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

$30 Free Bonus Plus 30% Deposit Bonus – Ayrex

$30 Free Bonus Plus 30% Deposit Bonus – Ayrex(0)

$30 Binary Options No Deposit Bonus to all New activated Clients. 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! This bonus allows you to profit without making an investment and trade binary options risk-free. Link:  $30

$50 Forex No Deposit Bonus Exclusive Offer – FortFS

$50 Forex No Deposit Bonus Exclusive Offer – FortFS(0)

$50 Forex No Deposit Bonus Exclusive Offer to New and Existing Traders. The $50 Forex No Deposit Welcome Bonus can be received within the promotional time period, from 28.11.2016 to 07.12.2016 inclusive. Link:  $50 Forex No Deposit Welcome Bonus Link:  Up to 50% Bonus of Every Deposit Link:  15% Support Margin Bonus Available to: New

$25 Countdown Forex Bonus Promotion 2017 – ForexTime

$25 Countdown Forex Bonus Promotion 2017 – ForexTime(0)

$25 Countdown Forex Bonus Promotion 2017 new and existing will be eligible traders. ForexTime is offering by receive a $25 credit bonus when they make a deposit of $300 into their accounts*. Link:  $25 Countdown Credit Bonus 2017 Link:  Loyalty Cashback Promotions Link:  $4 Cashback back for every lot Ending Date: 31 December 2016 Available

100% US NFP Bonus Promotion December 2016 – Xtrade

100% US NFP Bonus Promotion December 2016 – Xtrade(0)

Up to 100% Deposit Bonus Promotion to All New and Existing Customers. December 2016 US NFP Announcement Deposit NOW $1000 to $5000 and receive 100% bonus! Link:  $50 No Deposit Bonus Promotion Link: 100% Deposit Bonus Promotion Link:  Free Flight Tickets to Madrid Available to: All New and Existing Customers Bonus Ending Date: Valid 01/12

100% Welcome Bonus Plus Risk Free Trade – Trade12

100% Welcome Bonus Plus Risk Free Trade – Trade12(0)

Get 100% Welcome Deposit Bonus and 7-day risk free trade, Boost your trading with a free 100% Welcome Deposit Bonus to your Live Trading Account. Link:  Get 100% Welcome Bonus Link: 50% Exclusive Deposit Bonus Available to: All new clients Ending Date: 31 December 2016 Bonus Offer: Get 100% Welcome Deposit Bonus Plus 7-day risk

Get 25% Credit Bonus on their first Deposit – HYCM

Get 25% Credit Bonus on their first Deposit – HYCM(0)

25% Credit Bonus available on your Deposits. Experience Some of HYCM New Features, Services and Offers Receive 25% Forex trading credit bonus Link:  25% Trading Bonus on your Deposits Ending Date:  31 December 2016 Available to:   New Clients only Bonus Offer: 25% Trading Bonus Available on your deposits to New Clients only. This promotion is

$300 Free win Forex Trading Credit Bonus – easyMarkets

$300 Free win Forex Trading Credit Bonus – easyMarkets(0)

$300 Free win Forex Trading Credit Bonus to all new and existing clients. Answer the weekend quiz and fill the form with your correct and accurate contact details. Link:  50% Deposit Bonus Up to $2000 Link:  $300 Free win Trading Credit Bonus Link:  $25 Forex No Deposit Bonus Available to: All new and existing clients.

$25 Free Bonus Forex & Binary Options – MarketsYes

$25 Free Bonus Forex & Binary Options – MarketsYes(0)

$25 No Deposit Bonus Forex / CFD & Binary Options. in order to get the No Deposit Bonus they must register and during the registration it will be a place to paste the coupon code: wl25cm . Link: $25 Free Bonus Forex / CFD & Binary Options Available to: All New Traders. Ending Date: 31

$50 No Deposit Forex Welcome Bonus – Fort Financial

$50 No Deposit Forex Welcome Bonus – Fort Financial(0)

$50 No Deposit Forex Welcome Bonus to New and Existing Traders. The $50 No Deposit Forex Welcome Bonus can be received within the promotional time period, from 28.11.2016 to 07.12.2016 inclusive. Link: $50 Forex No Deposit Welcome Bonus Link: Up to 50% Bonus of Every Deposit Link: 15% Support Margin Bonus Available to: New and

$50 Free Black Friday Cash Bonus Promotion – XTrade

$50 Free Black Friday Cash Bonus Promotion – XTrade(0)

$50 Black Friday Free Bonus Promotion to all new Customers. Open an Account Today Start Forex Trading with Xtrade Broker and Get a $50 Black Friday Free Bonus Link:  $50 Free Black Friday Cash Bonus Link:  $20 Forex No Deposit Bonus Promotion Link:  77% Forex Depoait Bonus Promotion Ending Date: 31 December 2016 Available to:

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