Subscribe to RSS

Forex Market Overview:  Fed left the rates unchanged

On Thursday the latest meeting of the US Fed took place during which the officials decided to leave the rates unchanged on the historical low of 0-0.25% which made the US Dollar continue falling for the 3rd day in a row. At first, the US market reacted positively on the news with the stock indices advancing more than 1%. But later the investors became disappointed by the Fed Chair Janet Yellen’s comments on the global economic situation and its impact on the US resulting in the falling shares prices. In particular, the economic problems of the other countries may slow down the US GDP growth regardless of the Fed actions. The US regulator may still hike the rates later this year emphasizing the need to watch the labour market and inflation which is to reach 2%. The Fed has slightly improved the US economic growth outlook for 2015 to 2.1% but decreased it for 2016 and 2017. The market participants are skeptical about the statement on the possible rate hike this year. The Fed futures funds estimate this opportunity to happen on October 27-28 at 17%, down from 40% before the yesterday’s statements. Despite the higher volatility, the trade volume on the US exchanges was in line with the average level of the last 20 sessions and totaled 8 bln. shares. The strong housing market and weekly unemployment statistics were released. Today at 16:00 CET the leading August indicator will be released. The tentative outlook is positive. Nevertheless, the US stock index futures are in the red.

The European shares are on decline today retracing the yesterday’s fall of the US shares. The Fed comments were given after the closure of the most EU stock exchanges. Moreover, the Eurobonds are achieving momentum accumulating the liquidity from the stock market and arousing interest in the euro. The Eurobonds were looking down previously on the worries about the possible rate hike making them less attractive for investors than the US Treasuries. The euro continues strengthening amid the weakening Dollar due to the unchanged rates. Note, that on Tuesday the data on the widening EU trade balance surplus in July were released followed by the strong current account balance today. During the last three years the trade balance was negative in one singular month while the current account balance was negative in two months. No more significant data is expected today in EU. On 14:30 CET the inflation in Canada is to come out which may influence the Canadian Dollar.

The Nikkei index today was looking down together with the other global stock indices. The additional negative is the strengthening Yen. The Japanese carmakers shares and exporters Toyota Motor, Honda Motor dropped 1.4% The Panasonic Corp quotes (the household appliances producer) decreased 2.1%. The shares of Dai-ichi Life Insurance, the Japanese insurance company, plummeted 6.2%. Investors assume it holds a big portfolio of US bonds that have fallen slightly together with the US Dollar.

The gold price is on increase today for the 3rd day in a row amid the US Dollar weakening. The quotes are those assets are oppositely directed.

The beef quotes went down right at the beginning of the first trading day following the US Labor day and the end of the picnic season which disaffirmed all the previous recommendations to buy from the “Technical analysis” section. Today the markets are waiting for the weekly report «Cattle-On-Feed» of the US Agricultural Department to come out at 17:00 CET. According to the forecasts, the growth range of the store cattle was 101,2-104,1% as on September 1st compared with the same period of the previous year. The average forecast is 103,4% while the average livestock units number is 10,049 mln. If the actual data of the US Agricultural Department diverges with the market participants expectations this may trigger significant price changes.

More Details

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

Trading Competition more than $1000 Prize – FirewoodFX

Trading Competition more than $1000 Prize – FirewoodFX(0)

Forex live Trading Competition with more than $1000 prize. FirewoodFX presents the live account Forex Trading Competition 2 with cash prize more than $1000! Be the winner by achieving the highest profit! Link: Live Account Forex Trading Competition Link: 20% Bonus Make $100 Deposit or More Available to: All new and existing Ending Date: 31

Social Media Prediction Forex Contest – Grand Capital

Social Media Prediction Forex Contest – Grand Capital(0)

Social Media Prediction Forex Contest will receive $50 on live forex trading account. The Forex contest will end on 29th of March. The winner will be announced on the 3rd of April. Link:  Up to 444% Profit Receive for a single trade Link:  $500 Forex No Deposit Welcome Bonus Link:  Social Media Prediction Contests Link: 

100% Forex Deposit Bonus to your First Deposit – FBS

100% Forex Deposit Bonus to your First Deposit – FBS(0)

$123 Forex No Deposit Bonus for Free all new live Trading Account. $123 Forex No Deposit Bonus will be credited instantly.Take full advantage of the free bonus within 7 days of its active period Link:  $88.8 Lucky No Deposit Required Bonus (for Malaysian traders) Link:  $123 Forex No Deposit Bonus Promotion Link:  100% Forex Deposit

$25 Free Welcome Trading Gift to Start Trading – TRADE

$25 Free Welcome Trading Gift to Start Trading – TRADE(0)

Sign up and receive $25 Free Trading Welcome Gift to Start Forex Trading. $25 Free Forex Welcome Trading Gift by TRADE.com to trade forex live trading without any Deposit and investment to verify live account Link:  $25 Free Welcome Gift to Start Trading Available to: All new trading account Bonus offer: Sign up and receive

Stay Informed About Crucial BREXIT News – UFX Broker

Stay Informed About Crucial BREXIT News – UFX Broker(0)

How will BREXIT affect the value of the GBP? Could the EUR be affected, as well? Other European markets may see volatile market reactions as investors wonder how the UK may profit from its own market, rather than remain part of the EU’s single market. Stay Informed About Crucial BREXIT News with UFX Link:  Stay

Up to 444% Profit Receive for a Single Trade – Grand Capital

Up to 444% Profit Receive for a Single Trade – Grand Capital(0)

Up to 444% Receive Profit with our new Express Options for Grand Capital Ltd Binary Option Broker. Make a correct prediction for 3 assets at the same time Link: Up to 444% Profit Receive for a single trade Link:  $500 Forex No Deposit Welcome Bonus Link:  40% Forex Welcome Deposit Bonus Available to: All new

$6000 First Deposit Bonus Limited Time Offer – XTrade

$6000 First Deposit Bonus Limited Time Offer – XTrade(0)

Up to $6000 First Deposit Bonus Limited Time Offer (T&C applied) on all Deposits for all Customers. Become an XTrade customer, and get 60% Forex Special bonuses (T&C applied) on all deposits made during your first 7 days!! Link:  $50 Free Cash Welcome Bonus Promotion  (T&C applied) Link:  $30 Free Account Verification Bonus (T&C applied) Link: 

50% Deposit Bonus and $50 No Deposit Bonus – FortFs

50% Deposit Bonus and $50 No Deposit Bonus – FortFs(0)

$50 Forex No Deposit Bonus Promo Action to all eligible clients. Every client who passed the verification process in their trader’s room can get the $50 No Deposit Welcome Bonus Link:  $50 Forex No Deposit Welcome Bonus Link:  Up to 50% Bonus of Every Deposit Link:  15% Support Margin Bonus Promo Available to: New and

15% Forex Welcome Deposit Bonus Up to $1000 – XM

15% Forex Welcome Deposit Bonus Up to $1000 – XM(0)

15% Forex Welcome Deposit Bonus Up to $1000 and $30 Forex No Deposit Bonus Welcome Bonus brings Real Account clients the best rewards available. Entering the markets and trading with XM enables you to earn from your trades and build your own bonus up to a maximum of $1,000. Link:  $30 Forex No Deposit Bonus

Free $200 Earn with Binary No Deposit Bonus – Ayrex

Free $200 Earn with Binary No Deposit Bonus – Ayrex(0)

Earn $200 Free with Binary Options No Deposit Bonus to all new activated trading account. Ayrex presents its very first Binary Options No Deposit Bonus for new traders. Sign up to get FREE $30 and turn them into a fully withdrawable $200! Link: $200 Earn with No Deposit Bonus Link:  $100 Free Win in Just One

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories