Expectations of higher rates

22 February, 2018

On Thursday global stock markets continue to decline after a sharp sell-off in US stock exchanges on Wednesday. The risks are more likely to be exerted on markets caused by the expectation of relatively higher interest rates.

The European Stoxx Europe 600 is down by more than one percent in the middle of European trading, the index of the main European market - German DAX is down 0.70%. Futures for US indices are also insignificantly in the red zone.

The decline in markets and equity assets sale-off intensified after the publication of reports on the meeting of the American regulator in January. The reports strengthen expectations of rate-hikes in 2018. Forecasts of central bank officials in December 2017 predicted at least three expectations of a rate hike this year.

The IFO business sentiment index in Germany fell slightly, putting pressure on German 10 year bonds, which fell to about 0.715%, from 0.734%, when the markets opened in Europe.

The DX dollar index continues to grow this week, the index was in neutral position at the beginning of trading on Thursday. The dollar fell 0.5% against the yen to 107.24 cents, while the euro remained at 1.228 dollars.

Yesterday's statistics from the US turned out to be mixed. PMI rose, but sales in the secondary housing market were below the forecast. As a result, the dollar index jumped higher, exerting even more pressure on EUR / USD. Investors considered that the issue of raising the interest rate at the meeting in March was almost settled and rushed to work out this event.

Today, there is no big and important macroeconomic data in the US, but some representatives of the FOMC will deliver a speech that could further strengthen the market's expectations of an early rate hike in the US.

On Eur/USD daily chart, there is no fundamental changes so far. The price is still moving in the wide horizontal range with the boundaries at 1.2185-1.2500. Now the price moves from the top to the bottom and so far there are no signs that anything will prevent the price from the achievement of this goal.


Source link  
Asian markets higher, oil rally goes on

Oil prices extended gains in early trading hours as expectations for further reductions in global supply levels continued to build following Donald...

What's behind the oil rally?

The oil market has been going crazy in the last few days. On Monday, the US West Texas Intermediate crude for June delivery rose nearly 1.5 percent...

If Buffett is not investing on bitcoin...

Last week we have spoken about Warren Buffett's dislike for Bitcoin and the whole cryptocurrency world. Fine... it is not that he doesn't like it...


Equity indexes mixed in Asia

Markets in Asian traded mixed on Thursday as investors digested a widely anticipated interest rate decision by the US Federal Reserve while looking...

Asian stocks extend gains

Asian equity markets were mostly higher on Monday, with investors focusing on geopolitical tensions over the Middle East while keeping an eye...

Equity indexes in Asia rise

Asian equity indexes moved into green territory on Tuesday despite a weak lead from Wall Street on the back of higher Treasury yields and as traders await...


Trading activity is on the lowest

The light news flow and a break in US-Chinese trade rhetoric give the equity markets a positive momentum amid so far positive reporting season in the US...

Earnings in focus: a necessary revision

UK Average Earnings excluding Bonus (3Mo/Yr) (Feb) is expected to come in at 2.8% from 2.6% previously. Claimant Count Change (Mar) is expected...

Geopolitics weigh on sentiment

Markets in Asia were mixed on Monday amid rising geopolitical tensions following a western air strike over Syria and as investors await for fresh...


In the past 24 hours Bitcoin has gained 2.12% and reached $6550.15868834. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 1.2994% and is now at $1.1781. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 4.1% and is now at $223.333773403. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets90%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9FXCMFXCM79%
10AvaTradeAvaTrade77%
  


Share: