Federal Reserve’s Outlook Will Create an Energetic Market

The Federal Reserve’s economic outlook will create market volatility depending on what its signals is down the road regarding more interest rate hikes. The Fed is expected to raise its Federal Fund Rate today. Market conditions will become fast and traders will need risk management in place to participate in forex and CFD’s to guard against sudden movements.

Janet Yellen in Spotlight Today

U.S investors broke more records on Wall Street yesterday. However, the Federal Reserve will present their interest rate decision and economic outlook later today and stir the markets. Global investors will be focused on the U.S central bank the remainder of day. The Fed is widely anticipated to raise its interest rate, but the question traders are asking – is what the Fed expects to do regarding another interest rate hike later this year? Chairwoman Janet Yellen will conduct an important Press Conference for the Fed, and her answers will be listened to intently and have an impact. FX and CFD’s will see a large amount of volatility emerge as the day progresses, and traders will need to be alert and prepared.

Nikkei Declines as Caution Rules

Asian markets started in positive territory this morning, but were not able to hold their gains and declined – except for the Hang Seng which managed to have a fractional climb. The Nikkei and Topix Indexes continued to be cautious as Asian investors have essentially shown a spike in risk adverse sentiment, while they wait for the U.S Federal Reserve to pronounce their economic outlook. Industrial Production numbers from China this morning managed to come in slightly better than expected. The Yen has languished in a tight range against the U.S Dollar early this week, and should be watched carefully later today and early tomorrow morning. The 110.00 juncture appears to be important for the Japanese currency.

Pound & Euro Set for Volatility

The Footsie and Dax have opened with gains today as they follow in the higher footsteps of the U.S equity markets. The Average Earning Index figures from the U.K this morning did not meet expectations, but Industrial Production statistics from the European Union did match their estimate. The Pound has traded lower today after making gains yesterday. The 1.27 support level for the British currency against the U.S Dollar should be watched. The Pound and Euro are likely to see a full test of their ranges today as the U.S central bank releases their economic outlook later. Also, the Bank of England will present its Monetary Policy Summary tomorrow.           

Speculative Trading a Certainty

Gold will get plenty of attention from traders today. The precious metal has seen some pressure the past few hours as whipsaw conditions start to become exhibited. The Federal Reserve’s interest rate decision is sure to make Gold an extremely fast market later today. A support level of 1263.00 U.S Dollars appears to be important in the short-term.

Yaron Mazor is a senior analyst at SuperTraderTV.

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