I didn’t bother trading during NY since things were slow and sporadic. I faced a huge loss last night and I didn’t feel like taking any chances. However, after the FOMC, the Feds do look like they’re feeling a bit better on easing in the future. The possibility of a rate hike increased after their statement today. Although rates stayed unchanged, they stated that “near-term risks to the economic outlook have diminished”. I think this should be great for the dollar since other central banks are looking to cut.
Although the AUD/USD shorts have burned me yesterday, I decided to short it again as well with the GBP/USD. Interestingly enough, the dollar dipped down a bit despite the optimistic FOMC statement. I’m going to take this opportunity to buy the dollar at a better price and hold on.