The third of the GBP short positions that had been initiated earlier in the month also hit Target 2 yesterday (September 20). The EURGBP LONG entry at 0.8460 from September 12 spiked to Target 2 (0.8624) yesterday as the woes continued for sterling. These three trades have netted in excess of 770 pips.
Meanwhile, an interesting piece in the Wall Street Journal suggests what the Fed signals today will be more important than the headline policy decision. According to a WSJ report, especially in the summary of economic projections and the press conference. The WSJ takes a look at 5 areas specifically: 1) A December Signal? 2) The Path Forward? 3) What’s the Risk? 4) Where’s Full Employment? and 5) Dissents? These are mostly self-explanatory, but highlight whether Yellen and Co. will give a more concrete signal about December, how they will characterize the rate path (dots), if they reassess the balance of risk, how they define full employment, wage trends and explain low inflation, and will they keep everyone on board in doing so? This is a good framework for considering the aftermath of the decision.
The USD currently trades at EURUSD 1.1142, USDJPY 100.76 and GBPUSD 1.2960 before the announcement and the following press conference.