Countdown to FOMC on 31st of July
The Fed's voting committee will release its rate decision at 2:00 p.m. ET (17:00 London BST time zone).
The consensus view expects it to be a 25-basis points rate cut joined with a comment to act as appropriate to sustain the economic expansion. Some analytics predict even aggressive 0.5% rate cut.
Markets expect to be volatile, especially Gold (XAUUSD) and EUR/USD. Our approach is to place pending sell short above 1.11640 and buy limit below 1.11360, but if filled, close these positions before the release. Do not hold positions on the news, better stay aside and watch the market movement, wait 1 hour after release and try to catch on with the trend on a pullback with mandatory stop.