Rate-cut expectations: how do you trade them?

FTC Community TeamStaff17 Sept 202689 views

Expectations of cuts move currencies before any cut happens — the pricing leads, the policy follows. Trading the expectation means watching the pricing, not the calendar.

Rate-cut expectations: how do you trade them? — central bank rate path diagram — A central bank's policy rate path across recent meetings

how you track cut pricing
the pairs that move most on repricing
the reversal you've seen when pricing gets ahead of policy

Rate-cut expectations: how do you trade them? — risk-reward diagram — A risk-reward ratio of 1 to 2

Background: how interest rate decisions move currencies.

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