Prices are looking a little lost as the wires light up with FOMC headlines
I'm struggling to find an exact reason for what we're seeing today. There's no real news yet we're getting a lot of moves
The one main reason we can point to is the FOMC. Virtually every headline popping up is an opinion on the Fed
Here's a few that have hit the screens in the last hour or so
- Aussie braces for volatility RBA will favour as Fed splits markets
- Fed's "Dirty relent should flatten UST curve
- Fed may not get conditions needed to hike until H2 2016
- China's possible impact on timing for a Fed hike
- Treasuries on hold as bond market sees Fed delaying rate move
- Fed rate hike: Catastrophic for investor confidence
- Emerging markets high yield debt prices in Fed rate hike
- Turkey solar is a the bet on a Fed rate hike
The problem markets have is that they get an information overload with everyone trying to guess and then second guess what will happen before, during and after. That makes it messy for us to trade as players start to switch around positions or square off. For the last three FOMC meetings the expectation has ramped up higher each time
It's a fair warning that we'll probably see a lot of moves that don't make sense over the coming days, and with some big US data points to come before the FOMC we're going to be in for some sharp moves
