Monetary Policy & It's Effect On Forex Trading

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Monetary Policy & It's Effect On Forex Trading

  1. 1. Weekly V.I.P Live WebinarApril 27, 2011<br />General Overview Of FOMC Announcement<br />
  2. 2. Disclaimer<br /> The information and opinions contained within this webinar are for educational purposes only and do not constitute trading recommendations. Trading Forex on margin carries a high level of risk, and may not be suitable for all investors.<br />
  3. 3. What Will We Be Covering?<br />The Federal Open Market Committee (FOMC)<br />How do they determine monetary policy<br />Expectation surrounding today’s announcement.<br /> * Why is this announcement important?<br />Final RemarksQuestionsLive Market<br />
  4. 4. What is the FOMC?<br />The Federal Open Market Committee is the branch of the Federal Reserve Bank that determines the direction of monetary policy.<br />The group is made up of 19 members, but only 12 voting members; five regional FED bank presidents and seven members of the FED board of governors. <br />They meet eight times a year (every 6 weeks) and their meetings are conducted in secret.<br />
  5. 5. How Does The FOMC Formulate Monetary Policy?<br />The Federal Open Market Committee takes a look at various economic indicators , business data and forecasts in the market.<br />Some Examples:<br />NFP & Unemployment Data<br />U.S. Housing Market<br />CPI (Consumer Price Index)<br />PPI (Producer Price Index)<br />GDP <br />After the Reserve Bank Boards present there research, analysis & forecasts of the economy, then the policy options are voted upon by the 12 FOMC members.<br />
  6. 6. Why Is This Meeting Important?<br />Interest Rate Decision<br />When will the FED end QE2? Or, QE3?<br />Whatever is announced today, by the Federal Reserve may determine the direction of the USD. <br />
  7. 7. What to look for in Bernanke’s Statement?<br />Is the tone of the statement more Hawkish or Dovish?<br />Is it specific or vague?<br />What are their Inflationary Expectations?<br />Economic forecasts<br />
  8. 8. QuestionsComments?<br />

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