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The Dollar posted a tentative recovery from its key technical break this past week and the climb in risk trends stalled. Whatever designs you have for the trades that are born from those developments should take into account key event risk ahead in the Federal Reserve’s rate decision on Wednesday. The world’s largest central bank, acting on behalf of the largest economy and influencing its largest currency can seriously distort the global financial web. That isn’t just true of the actual decision the group makes in its policy deliberations but also in the market conditions leading up to the event. We discuss the technical and fundamental standings of Dollar and sentiment-oriented assets that are better held until after the policy meeting in today’s Trading Video. We also look over key event risk outside of the Fed’s influences, the corners of the market that get further away from monetary policy influence and a slip in the commodities market’s recent rally.
