It’s too much of a gamble in my view to trade USD positions around FOMC time so I prefer to trade the crosses. Anytime the USD sees some major volatility, we will tend to see the crosses move hard and fast and some will obviously outpace others. This will give rise to some excellent opportunities, especially if the pairs in question are basically in range-trading mode anyway.
I also tend to trade with a bias against existing market positions during these periods of volatility. People being people, they will get scared when volatility rises.
Presently, according to my information, EUR/USD is the single biggest position in the market (short of course) so buying dips in EUR crosses makes sense purely on a short-term volatility basis. I will look at some of the individual crosses in more depth as the day progresses.
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