FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
90%
HFM information and reviews
HFM
89%

It's time for fiscal policymakers to deliver


30 July 2020

The Fed’s Chairman, Jerome Powell, did a credible job on Wednesday of keeping monetary policy unchanged, while still managing to meet markets expectations in the best possible way. Despite no changes and little amendment to the FOMC statement, the Fed has shown that it will do whatever is in its capacity to support the economy.

Market participants are growing more confident that interest rates will remain near zero for a long time to come, even if inflation starts to tick higher. That is one risk-supporting factor investors do not need to worry about in the medium-term. However, the line added to the Fed’s press release stating that ’the path of the economy will depend significantly on the course of the virus’ should be taken into consideration as to how much risk needs to be in portfolios.

While some of the worst affected US states have shown that Covid-19 infections have peaked, the virus is not taking a break. Deaths in the US exceeded 150,000 on Wednesday and with a vaccine not expected to hit the market until later this year or 2021, more measures need to be taken to control the pandemic which suggest more economic pain. That is especially the case when we look outside of the US with Brazil reporting a daily record of 69,000 new cases on Wednesday and new outbreaks seen in Asia, Spain and Australia.

Now the pressure has turned to the fiscal side and chances for disappointment are high as Democrats and Republicans are nowhere close to a deal. Both parties are struggling to find common ground and with millions of jobless Americans facing the expiration of their $600 a week unemployment benefit, any further delay could lead to serious economic shocks.

We still believe that both parties will eventually come to an agreement, but the more compromised the agreement is the more pressure it will put on market sentiment.

Asian equities traded mostly higher this morning and European equities are expected to show slight gains. However, with US futures turning negative after yesterday’s strong performance, these may not hold. There are a lot of earnings releases from Europe and the US today, but the most watched results will be from the four Big Tech names Amazon, Apple, Alphabet and Facebook who report after the market closes. Those companies, including Microsoft, have been the major force driving US equity indices higher, so expect to see a lot of volatility in the next 24 hours.

#source

Share:


Related

The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast
The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast

Before getting down to analyzing why Euro reminds of a mafia victim in cement shoes falling off a Chicago bridge, allow us to open it up with a meme joke that best describes this whole ordeal...

31 Oct 2022

XAU/USD juggles around $1,710 as investors await US NFP
XAU/USD juggles around $1,710 as investors await US NFP

Gold price (XAU/USD) is displaying topsy-turvy moves in a narrow range of $1,709.35-1,713.42 in the early European session. The precious metal is displaying a lackluster performance...

7 Oct 2022

Positive mood stalls on the “pivot” trade
Positive mood stalls on the “pivot” trade

USD slid against most of its major peers. The DXY closed a tick above its lows of 110.05. Resistance is at 110.76 while next support is 109.29. GBP gained for a sixth session in a row, a winning streak not seen since April 2021...

5 Oct 2022

OctaFX glances at current economic shifts - the good, the bad, and the strange
OctaFX glances at current economic shifts - the good, the bad, and the strange

Pandemics and health crises, political tensions, geopolitical tension flashpoints popping up, Western sanctions on significant European and Asian economies, and grave tensions between...

3 Oct 2022

The Euro rebounded from the low
The Euro rebounded from the low

After updating its multi-year lows again, the major currency pair rebounded. The current quote for the instrument is 0.9656. Last night, the local interest in risks improved a bit, helping the asset to successfully correct...

29 Sep 2022

Gold Shows Signs of Life, But Heads Towards Another Losing Month
Gold Shows Signs of Life, But Heads Towards Another Losing Month

The precious metal is largely considered as a hedge to inflation, but it has not confirmed this status during the current year. It did kick it off with a rally, but as the Fed begun hiking rates back...

28 Sep 2022


Editors' Picks

IronFX information and reviews
IronFX
88%
FXCM information and reviews
FXCM
87%
NordFX information and reviews
NordFX
85%
MultiBank Group information and reviews
MultiBank Group
84%
Vantage information and reviews
Vantage
83%
FP Markets information and reviews
FP Markets
81%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.