Federal Reserve Meeting Minutes: Is It Worth to Track?
When trading in the Forex market, make it a habit to catch up with the trending news releases in the industry. Understand what’s currently happening in the financial market as a whole, not just with Forex itself. These news updates, will help you to make more logical decisions when trading with different currency pairs allowing you to learn to earn better with your investment choices.
Track the information that is published in the FOMC meeting minutes. It is conducted by the Federal Open Market Committee, a committee under the US Federal Reserve System. This committee is basically in charge of opening market operations of the United States, and it informs about decisions related to major financial issues such as interest rates and regulation of the country’s money supply. The FOMC also directs the operations of Federal Reserve in accordance to the foreign policies set by the US Treasury.
The Fed Minutes
The FOMC started to publish the minutes of its meetings in 2005. The minutes are released three weeks after the meeting, and the topics discussed the deal on the decision-making processes of the United States when it comes to monetary issues and economic development both domestically and internationally.
Markets usually shed some information about the meeting before the minutes are officially released. With this information at hand, Forex market players will know how to respond to the decisions of the FOMC and make sure that they are able to use this information to their advantage. More than that, they use the decisions made by the FOMC when it comes to interest rates. As with these actions, they learn how to buy and sell currencies, and as well draw trends, which are most likely to take place within a period of time.
How Do the FOMC Meeting Minutes Help You?
Getting hold of the Federal Reserve meeting minutes helps you in a number of ways. If you are doing fundamental analysis, this will definitely give you an idea of how much the US dollar costs presently and in the near future. Furthermore, you can determine how to give value to your currency pairs using the data you’ve learned.
The minutes of the meeting also tell you about how the United States plans to act in the financial market given the situation their economy is currently in. Of course, a volatile domestic economy will make the US dollar weak, and the Federal Reserve will definitely implement an action plan to keep the dollar strong – at least for the next few months.
The key points discussed in the meeting can also be used as indicators for your trading strategies. Most currencies usually depend on the power of the US dollar, thus they too suffer a sense of weakness whenever the dollar loses its own strength. Overall, you can make logical speculations about how the trading day will end and in turn know which currencies you can trade in with high probability.
P.S.: Do you want to catch up the latest economic news faster than others? Download free MT4 indicator Fx Pulse, which displays actual industry news directly on your chart in a second after its release.