News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Silver: 0.16% Oil - US Crude: 0.07% Gold: -0.84% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nKvZo7Xcu3
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.55% 🇦🇺AUD: 0.49% 🇨🇦CAD: 0.32% 🇨🇭CHF: 0.18% 🇬🇧GBP: 0.17% 🇯🇵JPY: -0.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/feoPRrquoc
  • Heads Up:🇪🇸 Business Confidence (FEB) due at 11:30 GMT (15min) Previous: -3.6 https://www.dailyfx.com/economic-calendar#2021-02-25
  • ECB will purchase bonds flexibility to prevent undue tightening
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: France 40: 0.41% FTSE 100: 0.38% Wall Street: 0.23% US 500: 0.04% Germany 30: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/yHJzP1WtWA
  • ECB's Lane says the ECB is closely monitoring the evolution of the longer-term nominal bond yields $EUR https://t.co/JpwbTqCFjo
  • ECB's Lane due out in 10-minutes Recent comments by ECB Officials - Lagarde "ECB is closely monitoring the evolution of longer-term nominal bond yields" (Feb 22nd) - Schnabel "We will ensure that there is no unwarranted tightening of financing conditions" (Feb 25th)
  • Selling in $CHF has shown little signs of abating, rise in global bond yields continues to pose a headwind $EURCHF performance - WTD +2% - MTD +2.5% https://t.co/H1FxF4154M
  • Join @CVecchioFX at 6:30 AM EST/11:30 GMT for his monthly central bank webinar. Register here: https://t.co/HyPgSrhjor https://t.co/AsCB634xDb
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHHGbZ https://t.co/NO6wH8ZDJF
S&P 500 Outlook: Fed Easing Cycles Bode Well for S&P 500 in Short Run

S&P 500 Outlook: Fed Easing Cycles Bode Well for S&P 500 in Short Run

Justin McQueen, Analyst

S&P 500 Equity Analysis and News

  • S&P 500 at Record Highs with Fed Easing on the way
  • G20 Summit: Ceasefire, Escalation or Deal

S&P 500 at Record Highs with Fed Easing on the way

This week saw the Federal Reserve confirm its U-Turn in monetary policy having provided an easing bias in an attempt to sustain the expansion. Consequently, US equities rallied with the S&P 500 printing a fresh record high, while Gold prices surged to break $1400 and bond yields continued its declines. With Fed Fund futures pricing in 30bps of easing by the July, the Fed look set to cut interest rates at the next meeting.

Typically, Federal Reserve easing and in particular “insurance” rate cuts tend to bode well for the S&P 500 “initially” amid the inflow of easy money and a fresh injection of liquidity. As such, while the rise in equity markets may look a little unconvincing, the prospect of an easing cycle from the Federal Reserve may not provide a good opportunity for a sizeable pullback in risk assets just yet.

S&P 500 Outlook: Fed Easing Cycles Bode Well for S&P 500 in Short Run

G20 Summit: Ceasefire, Escalation or Deal

As we look towards next weeks G20 summit, we get the feeling of déjà vu. Last November, the talks between President Trump and Xi dominated the headlines at the G20 Summit in Argentina, shortly after both parties agreed a deal to suspend new tariffs. While history doesn’t repeat itself, it often rhymes and thus we expect a similar outcome next week. As such, while this may boost sentiment, it does not detract from the fact that tariffs remain and as long as they do, companies feel the pressure.

S&P 500 Price Chart: Daily Time Frame (Jun 18 – Jun 19)

S&P 500 Outlook: Fed Easing Cycles Bode Well for S&P 500 in Short Run

Technical Outlook

Having posted fresh record highs, there is a potential for a bit of consolidation, thus increasing the likelihood of a marginal pullback with the RSI not in overbought territory. Alongside this, a slight negative divergence also supports the case for a dip.

RESOURCES FOR FOREX & CFD TRADERS

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES