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Fed is not done ..

Fed is not done with the rate hike forever wh market has a totally different set of expectation. The Fed is simply providing a pause and see how the equity market response. If we see equity price sell off again, then yes we can expect Fed continue to remain rate pause. If going into the 2nd half of 2019, US labor markets remain tight, if the US economy does not go into recession. Fed is likely to continue rate hike..

Where is our trading opportunity?  One best way is looking at the forex market. In the event if FED continues the interest rate hike after June 2019, the dollar is likely to move higher, therefore, we will be looking to buy the dollar and sell commodities currencies. Since the Fed’s decision to increase interest rate or not is data dependence, we need to pay attention to the Economic report release.

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