The Fed's Resolution Or Led To Further Fluctuations In The Foreign Exchange Market.

The Federal Reserve will hold interest rate meetings on 16-17 September next week, and the market is expected to raise interest rates as early as possible. This is also the main factor leading to weaker performance of commodities and commodities this week.

According to federal interest rate futures data, the Federal Reserve will raise interest rates by 60% before raising interest rates in July next year.

Next week, the US Federal Reserve (FED) will host the most important meeting this year, during which Federal Reserve officials will discuss whether to thoroughly adjust the forward-looking guidance for interest rates and try to identify the exit plan for ultra loose monetary policy (QE).

For now, the voice of the Federal Reserve's opposition to maintaining near zero interest rates for a long time is growing, and the details of the QE exit plan are almost complete.

Gennadiy Goldberg, an analyst at TD Securities, said that the discussion itself is evidence of a fundamental shift in monetary policy. If the Fed abandonment of the phrase "maintaining close to zero interest rates for quite a long time," it means it is possible to raise interest rates as early as March next year, which is several months ahead of most investors' expectations.

Sean Callow, senior strategist at Westpac Bank, Australia, said: "the selling of Australian dollars this week has nothing to do with all kinds of events."

Callow said: "everyone is talking about the possibility that the Fed will change its position next week, so it is wise to not make a multi Australian dollar before the meeting. He also said that we should closely observe the next critical support level near the 0.8983 level, which is the Fibonacci retreat position of 61.8% of the rally since 2014."

Phyllis Papadavid, a strategist at Bank of Paris (BNP), said that the US dollar index is expected to continue to strengthen, supported by the yield of treasury bonds.

The recent Australian economic data are somewhat uneven, and the Aussie dollar is likely to weaken further, although the RBA may maintain interest rates unchanged at this stage.

Nomura Securities pointed out in the Hui Market Research Report: we see these signs as the beginning of potentially more large-scale volatility recovery. The current sovereign debt yield super low risk premium will become a question. The return of various financial asset volatility will change the quiet state since the beginning of 2014.

With the global

Yields are bottoming up, and the September FOMC meeting is drawing near. The global market is already beginning to re digest the expected risks and various asset return attributes.

So the question that is worth considering is how to find the best trading strategy.

stay

In the field, we have already allocated a large number of positions to the US dollar rally, and recently increased the US dollar against the high-yield currency call option position (we intervened last week in the US dollar to Australian dollar call option).

Considering the blowout of foreign exchange market volatility, we adjusted the gamma risk value, pferred some ordinary options into the bullish cross price option (by tightening the gamma value), and added a new US dollar Gamma exposure to the new currencies, especially in the US dollar / Korean won and US dollar / Canadian dollar currencies.