Monday, October 23, 2017 5:55 PM EDT
John Taylor, Jerome Powell and also incumbent Janet Yellen are the final candidates to lead the Federal Reserve. With Trump being Trump, he keeps the tension high, like in his reality shows. This provides room for volatility. How can this be traded? Here is the view from Credit Agricole
Here is their view, courtesy of eFXnews:
Credit Agricole CIB FX Strategy Research notes that Fed Chair nomination should be announced within the next two weeks ahead of President Trump’s trip to Asia.
“We agree with market consensus that Jerome Powell’s chances look the best at the moment, not least because he should have supporters on both sides of the aisle and his path to confirmation in the Senate may be relatively smooth.
Assuming the USD is pricing in some probability of a more hawkish nomination (Taylor or Warsh), the immediate reaction would be to sell the USD.
However, dips in USD/JPY would represent a buying opportunity in our view as long as US data holds up (we expect a 2.7% QoQ gain in Q3 GDP on Friday) and tax reform hopes remain supported,” CACIB argues.
Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and ...
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Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and the trader's level of experience should be carefully weighed before entering the Forex market. There is always a possibility of losing some or all of your initial investment / deposit , so you should not invest money which you cannot afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market. Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch's authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur. Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit or loss, which may either arise directly or indirectly from use of such information.
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