The Federal Open Market Committee (FOMC) minutes can provide clues to future US Dollar, USD/SGD, USD/IDR and US Dollar/SGD movements, and when the minutes come out, the USD/SGD is usually the top earner. Such periods are always to our advantage and this is a time of rising expectations for currencies, especially the USD/SGD. USD/SGD is an excellent way to trade forex currency trading.
There are many currencies to trade today, and it will get more complicated as we get further away from the current global economic crisis. The major players in the world of FX trading are countries who want to move in and out of the country and currency markets. If they can move into these markets, they can gain a significant advantage over their opponents and eventually reach new heights in terms of economy and growth.
Forex markets, that is the entire foreign exchange market, is really much bigger than many traders or investors had thought. By investing in Forex, you can become very well educated in terms of understanding currencies. This will benefit you, because if you understand currencies better, you will be in a position to spot better opportunities when they arise.
An example of such a scenario is what will happen next week, when the FOMC will release its minutes. After a rough week, there are several potential US Dollar, USD/SGD, USD/IDR and US Dollar/SGD gains which can see continued appreciation against the Euro and the USD.
For those traders who want to invest more in US Dollar, USD/SGD, USD/IDR and US Dollar/SGD, there is no need to panic. If there is the slightest suspicion that the next FOMC minutes will result in US Dollar/SGD gains, then this will likely be followed by another one or two days of stronger rises. This can continue over the next few weeks and months as this will be the most favoured currency in the market at this time.
One thing to keep in mind is that the US Dollar, USD/SGD, USD/IDR and US Dollar/SGD could still fall slightly in the next two weeks. So, the trade could begin to pick up in terms of real profits. It all depends on the FOMC minutes when they are released, and this may not go in your favour.
Now, what are the possible outcomes of the FOMC minutes? Let’s have a look at the possible scenarios:
At the end of the FOMC minutes, there will be a rise in US Dollar, USD/SGD, USD/IDR and US Dollar/SGD prices. Of course, as the rally continues, the currency may drop slightly during the day or have one or two strong moves that are sustained for a while.
However, this scenario does not worry the forex market, because the more important news for the forex market is the FOMC minutes. As long as this information is reliable, the price of the currency will only rise a little.
However, if the FOMC minutes reveal that the FOMC will fall in the next few minutes, the price of the currency will certainly fall. and this will leave the market anxious and confused as to what the future holds for the USD/SGDollar.