Market Snapshot – All Eyes on Powell and the Fed

The Fed is expected to hike rates during their meeting today
Colin First
Forex Euro

Gold Awaits Fed

All eyes are on the Fed today as Powell takes centre stage. He has taken over from Yellen as the new Fed Chief only last month and hence the market would be all ears to know his line of thinking and what he feels about the monetary policy, the rate hikes and also the economy as a whole. We have the Fed rate announcement before that and then the FOMC statement as well and it is widely expected that the Fed would hike rates for the first time this year today. The market also anticipates accelerated rate hikes during the course of the year but it is here that the Fed is likely to let down the market, atleast as far as today is concerned. Gold prices have been very choppy since the morning of today as the traders await the Fed. The gold prices have been caught between the 1300 and the 1360 region for several weeks now and the market would need a huge surprise from the Fed or Powell for the traders to be able to push the gold prices through this range, else we are likely to see the gold market continue to consolidate and range within the larger market range, irrespective of the volatility.

Equity Markets Under Pressure

The equity markets are also under the shadow of the Fed but whatever they decide, we believe that the effect of that on the stock markets would be there only for the short term. Anything more than that would be unreasonable to expect from the markets as they are likely to be swayed more by the fundamentals and the threat of a global trade war breaking out due to the plan of the US to impose tariffs on goods from China and from other countries as well. This is likely to add pressure on the stock markets than the Fed decision.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US