NAS100 Subdued Ahead of the Fed’s Minutes & the Thanksgiving Holiday

  • NAS100
    (${instrument.percentChange}%)

NAS100 Analysis

The week started with risk aversion, emanating from the elevated Covid-19 cases from China and the first related deaths in a long time, which create fears over the economic outlook of the world's largest second economy.

Meanwhile, the Organisation for Economic Cooperation and Development (OECD) released its latest forecasts on Tuesday, not expecting a global recession under the central scenario, but does see a slowdown next year. For the United States in particular, it forecasts GDP growth of just 0.5% in 2023, from 1.2% in the previous projections. [1]

Investors have also been contemplating the potential for a moderation in the Fed's rate hikes pace, something to which many officials have alluded over the past several days. Others have been more hawkish however, but in any case, most of them seem to point to further tightening ahead.

In the latest policy decision earlier in November, Chair Powell had hinted towards smaller moves at some point, but had succinctly ruled out any pause and hinted to a higher terminal rate than previously thought. [2]

Today, markets will be looking at the minutes of that meeting, for more insights on the intentions of policy makers. We also expect a slew of economic releases, ahead the Thanksgiving holiday. Wall Street will be closed on Thursday and Friday will be a half-day, affecting the trading hours of various FXCM products

Sentiment remains fragile and NAS100 comes from a losing week, which creates risk for a breach of the EMA200 (11,460). The daily Ichimoku Cloud that follows could offer support and a catalyst would be required for sub-11,000 moves, whereas 10,437 seems distant at this point.

Trade the News: View our Economic Calendar

Despite the poor start to the week, NAS100 looks past risk-factors and above the EMA200 it has the ability to push for fresh November highs (12,080-89), although further advance past 12,468 has a higher degree of difficulty.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 23 Nov 2022 https://www.oecd-ilibrary.org/sites/f6da2159-en/index.html

2

Retrieved 25 Nov 2022 https://www.federalreserve.gov/monetarypolicy/fomcpresconf20221102.htm

Disclosure

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.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.

Risk Warning: Our service includes products that are traded on margin and carry a risk of losses in excess of your deposited funds. The products may not be suitable for all investors. Please ensure that you fully understand the risks involved.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}