Trade Ideas/USD/JPY

FOMC: Could be risky being long USD

I will be long USD/CHF heading into the FOMC but I may well hedge this position with a short USD/JPY trade until after the event. The reason being that the FOMC might decide to try and talk the USD lower just like the SNB, BOJ etc are doing with their currencies. As we know, the currency market is in a long-term race to the bottom and central banks will take whatever opportunity they can to weaken their currencies.

  1. Hi KC, well USD/JPY has already done a huge amount of work whilst I think that USD/CHF will play catch-up big time in coming weeks/months. When risk events like FOMC are happening, I still want the CHF exposure but am worried about USD leg, ergo the CHF/JPY position. I’ve always been more of a cross trader rather than a straight USD trader, and I do tend to over-complicate things from time to time 🙂

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