Federal sessions, for any professional trader, no longer cause the same anxiety as they used to. After years in front of screens, traders learn that the first candle of an FOMC news release is always booby-trapped. Its purpose isn’t to guide the market as much as it is to capture liquidity and settle exposed positions.
Let’s be realistic: the latest CPI indicator came in at 0.3% higher, and markets are currently pricing in something close to a 90% chance of a 25 basis point interest rate hike. The question everyone is asking is: is this the start of a new rate-hike cycle?