FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
Libertex information and reviews
FxPro information and reviews

Stock Futures Plunge, Here Is More On This

14 June 2022 Written by Naeem Aslam  AvaTrade Chief Market Analyst Naeem Aslam

Risk off-trade is in full swing as the US, and European futures continues to plunge and have started the week on the back foot again. Looking at the sentiment in the market, it is evident that traders and investors are highly pessimistic, and it is highly likely that we will see more losses for the US stock market. This, despite Wall Street posting one of its worst weekly performances on Friday for this year.

The Dow Jones Industrial Average dropped 880 points or 2.73% on Friday. The Nasdaq 100 index tumbled by 3.52%, and the S&P 500 stock index fell by 2.91 on Friday’s last trading of the week.

Looking Ahead

The US consumer sentiment reading released on Friday pushed traders and investors further into the corner. The reading flirted with the level of 50, which made investors immensely nervous. In addition, the US CPI also had a multi-decade high reading, which confirmed that there is much more pain for the US economy. This is chiefly because the Fed will have to make difficult decisions in the coming weeks.

The Fed, which will be announcing its monetary policy decision later this week on Wednesday, is expected to take further action to tame inflation readings. But here is the biggest dilemma for the Fed if they continue to increase the interest rate like they have seen doing, it is likely to slow the growth of the biggest economy in the world. The consumer sentiment reading released on Friday has already started to flirt with the level of 50.

In addition, we also have the US Core Retail Sales m/m and Retail Sales m/m data due before the Fed’s monetary policy decision. Once again, the retail sales number isn’t expected to be stellar because consumers are already feeling the pain due to their eroding disposable income. We will likely see the retail sales data taming some of the most hawkish expectations about the Fed’s monetary policy.


Since Friday, the Euro and Sterling have been under tremendous selling pressure against the dollar. This is mainly due to the strong US CPI number. There is no doubt that the dead cat bounce for the EUR/USD and GBP/USD is over now. Now, it is time for traders to think more carefully. The BOE is expected to announce its monetary policy on Thursday, and it is widely anticipated that the bank will continue to increase its interest rate. The BOE is in the most challenging situation among the developed nations as the country continues to face slower economic conditions and soaring inflation.

In terms of the price levels, we will likely see the GBP/USD touching or even breaking the critical support at 1.20, and if this does happen, we could see the price retesting the next support at 1.15. As for the Euro/dollar, the parity calls are likely to be very much back on the table.


The precious metal is in a different condition. Although we did see the metal price soaring on Friday on the back of the US CPI reading, the fact that the bets are strong for a more aggressive stance from the Fed has strengthened the dollar index, which has taken the wind out of the gold rally. We will likely continue to see this trend this week; however, an extreme bearish stance in the US equity market could spur some safe-haven trades, which means the downside for the gold price is limited.


The correlation between the equity market and Bitcoin continues to pick more strength as we see the Bitcoin price dropping much deeper in a bear market. The weekend’s price action was brutal for cryptos, and today’s price action isn’t encouraging either. The BTC price has retested the 25K support level, and we will likely see the price falling towards the 20K critical price. The weekly time frame shows that the price is way oversold, and we may see a relief rally soon.




Dollar smiles after impressive jobs data reinforces Fed bets
Dollar smiles after impressive jobs data reinforces Fed bets

Despite several leading indicators warning about a loss of momentum in the US economy, the labor market is still firing on all cylinders according to the latest jobs report...

8 Aug 2022

Stocks drift, dollar firms as markets brace for US jobs slowdown
Stocks drift, dollar firms as markets brace for US jobs slowdown

Recession jitters were abound on Friday even as markets got off to a steady start following a few wobbles along the week. PMI indicators around the world painted a grim picture for services activity, suggesting major economies...

5 Aug 2022

Wall Street bounces, shrugs off Taiwan tensions and hawkish Fed
Wall Street bounces, shrugs off Taiwan tensions and hawkish Fed

Geopolitical tensions and recession fears appear to have faded into the background for investors as shares on Wall Street staged another impressive rally on Wednesday...

4 Aug 2022

Fed hawks lift yields out of the doldrums, yen pauses for breath
Fed hawks lift yields out of the doldrums, yen pauses for breath

Bond markets were reeling and interest rate futures were being recalibrated after Federal Reserve officials questioned the recent scaling back of rate hike expectations by investors...

3 Aug 2022

US-China tensions dent appetite as yields crumble, dollar creeps higher
US-China tensions dent appetite as yields crumble, dollar creeps higher

Risk sentiment took a knock on Tuesday as it emerged that the Speaker of the US House of Representatives Nancy Pelosi is on her way to Taiwan, defying China’s strong advice against...

2 Aug 2022

Crude Oil Is Afraid of Geopolitics
Crude Oil Is Afraid of Geopolitics

The commodity sector remains rather tense on Monday; Brent is trading at $102.75. Global geopolitics is what investors are focused on right now. Any complications in this area muddy the water...

1 Aug 2022

Forex Forecasts

HFM information and reviews
IronFX information and reviews
FXCM information and reviews
Pepperstone information and reviews
NordFX information and reviews
LegacyFX information and reviews

© 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.