How to Trade on Fed Hope
Investors are hoping for the best from the Fed meeting, and this strategist has a way to trade the optimism.
If you're looking forward to the report from the Fed meeting, you've got plenty of company. With Treasury yields, the dollar, and stocks all rising, investors seem to be in a sunny mood.
So how do you trade on the morning-in-America feeling?
Why, by selling the greenback.
"If we can see the dollar continue to rise, you want to buy the Mexican peso and sell the dollar on that move," Patterson told CNBC's Scott Wapner. "If the U.S. does well, so does Mexico - and you get a yield pickup."
Patterson wants to enter the trade right around 12.86 with a stop at 13.00 and a target of 12.40.
You can watch the whole discussion on the video.
Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm.
Learn more: The essential vocabulary for currency trading is on Key Currency Terms. Top currency strategies are broken down for you in Currency Class.
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