FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews

Fed expects stock market crash

12 November 2020

It's no secret that the world economy is in a stalemate. For several months, most of the world's countries have been on the verge of a financial crisis, which can only be avoided thanks to significant monetary incentives from central banks. And if earlier analysts and experts of the largest financial organizations spoke about this, the Fed also noted the threat of a market collapse now.

Please note that for the second trading day in a row, the main US stock indices froze. It is also noteworthy that this happened immediately after the S&P500 index updated its historical high and its incredibly rapid decline below $3,600. As a result, it is extremely difficult to rule out a bearish scenario, which in turn can provide incredibly strong support for the USD. 

Now I suggest to pay attention to the EUR / USD currency pair. After the collapse of quotations to the support level of 1.1800, the activity of sellers remains very weak. It is also interesting that we do not see any obvious excitement among buyers. Therefore, even a slight strengthening of the USD will provoke another wave of sales. The nearest target for sellers will be 1.1700, a breakout of which will open the way to 1.1615 – this is a local goal.

The general strengthening of the American currency will affect all pairs with the US dollar, while the potential for growth of USD / JPY looks like one of the most powerful. A return of the pair's quotes above 105.50 may trigger a strong wave of growth, opening the way to 107.00. But we should also not exclude the alternative scenario, which involves the resumption of a downward price movement, since the pair is held under the trend line.

Moving to the American trading session, I will note a steady rise in oil prices. There are enough reasons for the recovery of the “black gold” market. First, and perhaps most importantly, pharmaceutical company Pfizer reported surprisingly good results in vaccine trials during its third phase. And the second reason is the fact that Joe Biden does not intend to support the oil sector, as it was under Trump, which could lead to a decrease in black gold production, thereby supporting oil prices.



Oil Is About to Update Its Highs
Oil Is About to Update Its Highs

The key support factor is market expectations of a stable demand for energies in the future. In particular, it’s the report from the International Energy Agency, which...

28 Sep 2021

Forex and Cryptocurrency Forecast for September 27-October 01, 2021
Forex and Cryptocurrency Forecast for September 27-October 01, 2021

The Fed did not make any changes to its monetary policy at its meeting on September 21-22. However, the regulator made it clear in its commentary that...

27 Sep 2021

Stock Futures Soft Ahead Of Powell’s Speech
Stock Futures Soft Ahead Of Powell’s Speech

Futures in the United States and Europe are trading mildly lower today. Stock traders welcoming the view that a near-term withdrawal of quantitative easing reflects...

24 Sep 2021

Stock Futures Up Ahead Of Fed Meeting
Stock Futures Up Ahead Of Fed Meeting

Futures in the United States and Europe are trading higher today, as investors focus on China’s Evergrande whirlwind, which has even overshadowed the Federal...

22 Sep 2021

Gold's sudden glow in a falling market
Gold's sudden glow in a falling market

Gold's ability to resist the general downtrend speaks to investor confidence that global central bank policies will remain soft enough to avoid triggering a global downward asset sell-off spiral...

21 Sep 2021

Forex and Cryptocurrency Forecast for September 20-24, 2021
Forex and Cryptocurrency Forecast for September 20-24, 2021

The dollar continues to strengthen, and the EUR/USD pair moves south. Starting on Monday September 13 at 1.1810, it ends the five-day run at 1.1730. The movement...

20 Sep 2021

Editors' Picks

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 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.