Fed fighting

13 September, 2016

Friday proved to be a rather uncomfortable end to the week for most markets, with increased nervousness regarding Fed policy resulting in losses in equities, a sell-off in bonds and a sharp increase in implied volatility in both equities and also FX. Once again, there appears to be a fight in play, between a Fed keen to raise interest rates and a market far more sceptical of it happening. Currently, the market places a 30% probability of the Fed putting up rates next week. Today sees the final speech from a Fed official before the meeting, with Brainard due to speak early during the European meeting. Traditionally, she’s perceived to be on the dovish side, but there is some thinking among Fed watchers that she could be used to shift market thinking more towards a tightening. So there are volatility risks on the dollar later today.

For now, the dollar is starting the week on a slightly softer footing and more so against the yen, with talk in some quarters of the BoJ moving away from ‘shock tactics’ of the past. Equities followed through on the Friday session’s weakness during the Asia session, with that also being reflected during the European session. We’re likely to be in a waiting game ahead of the Fed speech later today, with nothing major on the data calendar to provide a distraction before Brainard’s speech at 17:15 GMT.


Source link  
Equity market causes investors confusion

As a turbulent December in equity markets draws to a close, there's one thing traders and investors can agree on: these are not usual times, especially...

Global debt exceeded $ 184 trillion

According to the International Monetary Fund (IMF), the global debt has achieved $184 trillion with $86,000 per person, a figure that is twice larger than...

Why U.S. markets are under pressure

Global markets are on the rise on Wednesday, adding more than 1.2% on the MSCI Asia ex Japan index. Japanese Nikkei jumped by 2%. Chinese...


Dow recovers after 500 points decline

Stocks closed higher Monday as major indexes bounced back from earlier losses as renewed confidence in the strength of the U.S. economy offset lingering...

Pound rallied, stocks declined

The U.K. main stock index closed lower Thursday, weighed down by weakness for resource stocks and banks and a strong pound as the outline of a key agreement...

Oil slips as U.S. inventories swelled

Oil prices slipped on Thursday after U.S. crude inventories swelled to their highest level since December 2017 amid concerns of an emerging global glut, although...


Crude's Collapse Is Sending Shockwaves

Investors have gone from contemplating the prospect of oil at $100 to sub-$50 in less than two months. No wonder global markets are playing catch-up....

Dollar growth pushed down stock indices

Monday was a hard day for the financial markets. American DJI lost more than 2.3% and S&P500 decreased by 2.0%. As in previous weeks, the main pressure...

U.S. stocks recover after elections

Preliminary estimates of the U.S. election results support a positive mood on the world markets, reducing the demand for protective assets and causing...


In the past 24 hours Bitcoin has gained 0.87% and reached $3605.18154946. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 1.5351% and is now at $1.1563. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -4.34% and is now at $118.48453878. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2019

# Broker Review
1easyMarketseasyMarkets91%
2FXTMFXTM87%
3HYCMHYCM86%
4FxProFxPro84%
5FIBO GroupFIBO Group83%
6OctaFXOctaFX82%
7HotForexHotForex81%
8FXCMFXCM80%
9XMXM72%
10FP MarketsFP Markets69%
  


Share: