The Federal Open Market Committee looks at the job reports and for their rate decision and if they would hike, it would be the first time in nearly a decade. I will not bore you with my personal prediction and tea leave reading on this, since I will not trade into the event anyway or hold any bias going in. As a matter of fact, I will close all open dollar positions beforehand to protect my trading capital. But the market players seem to expect a rate hike with a probability of about 30% and this is why volatility, spikes and movements can occur (not to mention some brokers charging crazy spreads during this event). Not only the rate itself is important, the statement and press conference are also key because the language a uses (be it hawkish or dovish) influences the market and thereby the value of its currency.
In case of a hike, the Greenback will strengthen instantly which could last for weeks and months. Buying it against currencies with a diverging would then be a good idea if you find a technically viable set up (never without!). In case there is no hike, the language will take center stage and will determine whether the Dollar will weaken or strengthen. If the language would be dovish, we will see a sell off of the Greenback and the Fibre will rally as a consequence (its not called the anti-dollar index for nothing). I will enjoy FOMC in Forex chat (the place to be for these high impact news events, exchanging ideas in real time as it happens!), assess whether the Dollar will strengthen or weaken fundamentally and then look for technically viable setups in that fundamental direction to make pips off this event, once the spikes and movements have died down.
I wish everybody good luck, trade safely, enjoy the event and lets make some pips!