The Federal Open Market Committee (FOMC) is the body in charge of Monetary Policy for the Federal Reserve. Currently, Jerome Powell is the Chairman of the 12 member board which is composed of 7 board members and 5 Reserve Bank presidents out of the 12 total reserve banks. The FOMC releases many critical announcements for the U.S. economy and its growth. Today, the release will be 8 times per year interest rate announcement and rate statement along with a quarterly Economic Projection.
"Today, the Fed is the star-rushing the field with new and exotic games of finance: Quantitative Easing, the Greenspan Put, and entirely possible Negative Interest Rates in the future. All this because the executive and legislative branches seem unwilling to take responsibility for the budget." -Shawn Lucas
Some things a Forex Trader needs to be aware of are news events. Any trader that has been suddenly caught in a whirlwind of volatility, spread, and slippage can warn you about the dangers of ignoring these events. The question many new traders have, however, is how does a trader stay on top of all the news events? And which ones are important?
Last week, The U.S. Department of Labor presented the monthly update on nonfarm payrolls. This would be an example of a scheduled news event. This may come as a surprise to some of you, but did you know that Apiary usually discourages trading during scheduled news events? It’s not necessarily bad to trade during these events, but here is a couple of reasons behind our thinking: