Morning traders, the plan with the FOMC today is simple, we wait for the event, we listen to Powell carefully, and if he keeps the door open for another 25bps hike in June we jump into some Dollar longs at least until the NFP on Friday, if he doesn't, maybe we can get in some USDJPY shorts or most likely we will just wait for the next important fundamental development that will likely be the NFP on Friday
Anyway, I think that Powell will keep the option for another 25bps hike so I would be leaning into USD longs today BUT Goldmans and others are all calling for the FED to signal a pause in hikes today, so I'm against the consensus in this view but that's also what makes this opportunity attractive, I mean, if Powell signals a pause the Dollar doesn't flinch much because that's expected already, if Powell signals another rate hike the Dollar strengthens quite a bit because that scenario is NOT priced
Smart Jet
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