FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
Libertex information and reviews
Libertex
91%
FxPro information and reviews
FxPro
90%

Wait-and-see markets


26 August 2021 Written by Hussein Al Sayed  Chief Market Strategist at Exinity Group (Gulf & MENA) Hussein Sayed

Markets are fairly quiet with a slight retracement of the risk rally we have seen this week. Four days of gains in most risky assets, from fresh record highs in US stock markets to the commodity/risk related currencies are showing signs of slowing this morning. How sustainable this rally is should be answered by Fed Chair Powell’s speech tomorrow, expected at 15.00 GMT. Will the Delta variant spread upend and delay tapering plans? Or are those risks manageable and tapering is on track to happen before year end?

The full agenda of speakers is set to be released today, after the Kansas City Fed, who organise the event, decided to condense the two-day programme to Friday only.

Low vols

The dollar is sat near one-week lows with FX volatility muted. The Deutsche Bank FX Volatility Index is near historical lows with traders not expecting to see Powell offer markets any new information. Activity in the US equity options market is similarly relaxed with investors looking past the Jackson Hole event. S&P options are currently pricing in a one-day move of about 0.6% tomorrow.

Measures of trader’s expectations in bond markets and US Treasuries are also subdued. A widely watched index devised by the Bank of America and the futures exchange, ICE, is just a little higher than its five-year average.

Fed speakers today

Ahead of Chair Powell’s speech tomorrow, we do get to hear from two other central bankers from the Federal Reserve who are speaking today. Bullard and Kaplan are known Fed hawks so any substantial pull back from their usual stance positioned around an October start to tapering asset purchases could further lower expectations for Jackson Hole.

Remember that Kaplan has been one of the Fed’s most forceful supporters for starting to reduce support for the economy. But he raised eyebrows recently by saying he may need to adjust his hawkish stance if the Delta variant slows economic growth materially.

#source

Share:


Related

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

Forex and Cryptocurrencies Forecast for September 26-30, 2022
Forex and Cryptocurrencies Forecast for September 26-30, 2022

Last week, all the attention of the markets was focused on the FOMC meeting of the US Federal Reserve, which took place on September 21. The probability of another rate hike by 75 basis points (bp)...

26 Sep 2022

Trading the SPDR S&P 500 ETF Trust
Trading the SPDR S&P 500 ETF Trust

The Standard & Poor’s (S&P) 500 Index measures the market capitalisation of the top 500 US largest corporations. Many traders and investors use the S&P 500 Index as a benchmark...

23 Sep 2022

Gold pauses as traders await Fed decision
Gold pauses as traders await Fed decision

The anticlimactic performance of gold continues as the prospect of aggressive rate hikes by central banks around the world amid heightened inflationary pressures...

21 Sep 2022

Developing a forex trading plan: All you need to know
Developing a forex trading plan: All you need to know

All forex traders have different backgrounds, market views, risk appetite, thought processes and expectations. Therefore, traders should not just blindly follow what other traders do...

20 Sep 2022


Editors' Picks

HFM information and reviews
HFM
89%
IronFX information and reviews
IronFX
88%
FXCM information and reviews
FXCM
87%
NordFX information and reviews
NordFX
85%
Vantage information and reviews
Vantage
84%
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.