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- Markets conditions an hour before the Fed rates decision in USA
Markets conditions an hour before the Fed rates decision in USA
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Loading...Markets are trading with slightly decrease and this shows the investors caution before the US interest rates decision. S&P couldn't make a new high yet and is trading around its highest levels of 2,385. The situation with the Dow Jones and Nasdaq indexes is the same.
S&P trading volume today is 14% above its 30-day moving average with the financial and consumer sector rising, and communications, real estate, materials and technology sectors declining.
VIX is worth 10.8, indicating a quiet market without high volatility, but this is likely to change when news arrives at 9:00 pm (our time).
The US dollar is also traded steadily and was slightly stronger than the previous day with its best strength seen against the risky currencies as AUD and NZD. The oil prices are at the lowest levels at $ 47.60 and this zone is an important support for the raw material. If it breaks down here, it is likely to see even lower levels and this will negatively affect the indices. The euro is traded higher against the risky currencies, but the EUR/USD pair is moving narrowly, suggesting that the strength of the two currencies is currently balanced.
Market sentiment for the Fed's decision is about 50% chance to increase and is likely to remain unchanged for now but this is yet to be understood. The chart shows a forecast of interest rates hikes less than twice and chances for that are declining.
We expect high volatility and sharp movements at EUR/USD, USD/JPY, and GOLD.
Chart source: Bloomberg
Trader Senan Fuchedzhiev
Varchev Traders Read more:
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