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Fed Expected to Increase Interest Rate Today and Investors are Ready

By:
Yaron Mazor
Published: Jun 14, 2017, 07:26 UTC

Wall Street climbed to highs on Tuesday and remained in record territories. The Federal Reserve will release its Monetary Policy Statement and Federal

Fed - Rate Hike Ahead

Wall Street climbed to highs on Tuesday and remained in record territories. The Federal Reserve will release its Monetary Policy Statement and Federal Funds Rate later today. Employment data will come from the U.K which will be watched.

Interest Rate Hike Coming?

Wall Street climbed higher again on Tuesday and continues to test record terrain. The Dow Jones Industrials will start the day above 21,300. Testimony from Attorney General Jeff Sessions was loud at times yesterday in Washington, but did not harm the Trump White House on the surface. Today the Federal Reserve will release its interest rate decision and it expected to hike the Federal Funds Rate by a quarter of a point. Its Monetary Policy Statement will prove important too, because investors want to know the central bank’s economic outlook. Also inflation and retail sales reports will be released from the States. Trading sentiment certainly took on additional risk yesterday via equities. Forex and CFD traders will have a full plate of economic data to examine and react to as the day progresses.

Yen Locked in Consolidated Range

Industrial Production numbers from China came in better than expected early today, and its Retail Sales figures remained stable. Asian equity markets have been cautious. The Nikkei and Topix Indexes have put in small gains this morning, while the Shanghai Shenzhen and Hang Seng composite have had marginal declines. The Yen has been locked into a consolidated range against the U.S Dollar and the 110.00 level remains an important juncture. Traders are clearly waiting on the U.S Federal Reserve Monetary Policy Statement, and will react upon the news early on Thursday in Asia.

British Employment Numbers Today

The Pound rebounded on Tuesday from its low water marks. The British currency now has short-term support near the 1.27 level against the U.S Dollar. Inflation data via the Consumer Price Index in the U.K was stronger than expected. Today employment data will come from the U.K, along with the Average Earnings Index. British politics remain a factor in trading. A German Economic Sentiment reading yesterday proved lackluster. The Euro has been range trading early this week. European equities were mixed yesterday with slight losses on the Footsie and limited gains on the Dax.

Effective Risk Management Needed

Gold has put in early gains this morning and is trading above the 1270.00 U.S Dollars an ounce price point. The precious metal will be volatile later today because of the U.S central bank’s rate decision and economic outlook. Traders need to use risk management effectively today in the Gold market.

Yaron Mazor is a senior analyst at SuperTraderTV.

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About the Author

Yaron Mazorcontributor

Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology, and education.

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