Market Snapshot – Market Long the Dollar on FOMC Anticipation

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Updated: May 24, 2017, 12:55 UTC

China Downgraded by Moody's for The First Time Since 1989 The biggest news of the morning and afternoon so far has been the downgrade of China's rating by

China Downgraded by Moody’s for The First Time Since 1989

The biggest news of the morning and afternoon so far has been the downgrade of China’s rating by Moodys which is the first over the past 28 years. The agency pointed to several credit and housing risks as the basis for its downgrade and this caused the markets and the yuan in China to have a deep correction in the morning. This also caused the gold prices to fall for a brief while below 1250 before it managed to rccover during the European session. As the day wears on, the focus will shift towards the FOMC minutes later in the day and the speech from Draghi which will happen in a couple of hours from now.

Oil Prices Move Up On Anticipation

The oil prices continue to trade strongly since the beginning of the week as the market waits in anticipation of the OPEC meeting on Thursday. It is generally expected that the OPEC producers would deliver a much larger cut in the production and for a much longer while than what was proposed initially, as a way of improving the oil prices and pushing it towards the $60 mark in the short term. This has made the oil prices move steadily above $51 where it trades as of this writing.

Dollar On The March as FOMC Looms

The dollar has been the star over the last 24 hours as the dollar longs are getting re-initiated on the increased anticipation of the Fed hiking rates in June. This expectation had died down last week as the political troubles of Trump took control of the headlines but with those going away into the background, the Fed is back in focus and the FOMC minutes is being waited upon in keen anticipation on the hope that they would deliver an optimistic picture of the economy and give hints of the rate hike in June.

Stock Markets Buoyant on Positive US News

The stock markets have been seeing some buoyant buying as Trump seems to have regained control of the political troubles that he was forced into last week and the markets begin to focus on his new tax plan and the Fed. This has helped the stock markets to regain some of their losses over the last week and helped it to look forward towards more gains in the short term.

About the Author

Colin Firstauthor

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.