Page 52 of 73
The Federal Reserve delivered another historic 75 basis points rate increase and upgraded its forecast, seeing rates as high as 4.4% by the end of the year
The NAS100 is sensitive to interest rate movements due to the time value of money. As such, tomorrow's Fed hike is creating headwinds.
The CPI surprise yesterday led to a 3.9% decline in the US30. This plunge puts the index back in its bear zone between the lower blue and red bands. Moreover, the daily stochastic is rolling over (green rectangle). If it drops below 20 and holds (red arrow), a strong bearish momentum will be underlying.
NAS100 plunged on Tuesday after the inflation report that bolstered expectations for another jumbo rate hike by the Federal Reserve, but manages to find support today
Core CPI accelerated in August as yesterday’s report showed, just a week ahead of the Fed’s upcoming policy meeting, which may put pressure for an even larger move on interest rates
ISM Services came in at its highest level in four months. It printed at 56.9, topping the forecast of 55.4. This beat is a good number, considering the US economy's headwinds - a number over 50 suggests expansion.
US30 remains under pressure at the start of the week.
Current index weakness introduces the possibility of a bear market rally scenario.
US30 shows uncertainty for the week, as Fed officials give mixed signals.
The retail giant did largely better than it expected, based on it recently lowered projections, amidst high inflation and costs
Last week's rally was highly favourable for the US30 on a technical basis.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.