Forex Trading Outlook: September 14-18, 2015

Forex Trading Outlook: The Fed Holds The Key.

It’s been a long time since I have seen so many conflicting views from commentators all over the world about the upcoming possible Fed rate hike.

From experts, pundits, economists, professors and market guru wannabees; the opinion is confusing to say the least.

Close to 50% of them have given excellent reasons why the Fed should increase interest rates by at least 0.25% basis points when the meet in a few days’ time.

On the flip side, the other 50% have given equally good reasons why the Fed should leave rates alone.

Wait And See

This will be a very interesting week for all markets world wide and especially for Forex trading.This is the exact scenario that makes a market. On one side we have the buyers and the other side the sellers. This time the Federal Reserve (The Fed) is the referee calling the shots and directing the game.

The world markets are waiting with bated breath and even the so called experts do not know for certainty the Fed decision. Whatever they say will swing these markets solidly one way or another. That, my friends and fellow traders, you can cast in stone.

So instead of joining the hype and standing on one end of the field or the other, it is better that we wait and see what happens on Thursday, and then go from there.

I’m of the firm belief that whatever the Fed decides, their action will set up the markets for a run in that particular direction through the end of the year. And If the Fed raises the rates it will be the start of many to come.

The ForexSignal View

Until this point, we have felt that the Dollar will keep going strong against most of the majors, and most definitely against the commodity related currencies like USD/CAD and AUDUSD. Any move opposite should be a great opportunity to be buying USD on those pullbacks.

But that said, this view could change in seconds. The Fed will provide us with the answer on Thursday.

For our subscribers currently active with our trades, we may alert you to close any open trades regardless of the floating profit or loss. We feel the swings will be wild and large slippage can be expected in the less liquid pairs with spreads widening and some brokers even suspending trading in certain pairs. Keep an eye on your broker (Forex Merchant) for any announcements they may make in this regard.

The Bottom Line

In preparation for the upcoming announcement, we have learned from our 18 years in the Forex Trading industry that there is a time to just sit safely on the sidelines. We feel this is one of those times. This is going to be a big market moving event, and we’ll proceed cautiously until we get some clarity after the Fed decision.

Once we get some confirmed direction we will be business as usual and you can expect our Forex Trading signal activity to increase with the added volatility.