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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: France 40: 0.82% FTSE 100: 0.28% Germany 30: 0.19% US 500: 0.18% Wall Street: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Rbdrdjj6kp
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/NPHJ7riOrS
  • USD/JPY IG Client Sentiment: Our data shows traders are now net-long USD/JPY for the first time since Jul 20, 2021 09:00 GMT when USD/JPY traded near 109.86. A contrarian view of crowd sentiment points to USD/JPY weakness. https://www.dailyfx.com/sentiment https://t.co/siqj2GrhF5
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/f5NSF0ih1d
  • Gold Prices Climb Ahead of FOMC as Traders Anticipate Status Quo, USD Falls https://www.dailyfx.com/forex/market_alert/2021/07/28/Gold-Prices-Climb-Ahead-of-FOMC-as-Traders-Anticipate-Status-Quo-USD-Falls.html https://t.co/ymhbav9fHz
  • 🇮🇹 Business Confidence (JUL) Actual: 115.7 Expected: 115.4 Previous: 114.8 https://www.dailyfx.com/economic-calendar#2021-07-28
  • 🇮🇹 Consumer Confidence (JUL) Actual: 116.6 Expected: 115.5 Previous: 115.1 https://www.dailyfx.com/economic-calendar#2021-07-28
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 94.24%, while traders in Wall Street are at opposite extremes with 73.69%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ukleIKEzfx
  • Heads Up:🇮🇹 Business Confidence (JUL) due at 08:00 GMT (15min) Expected: 115.4 Previous: 114.8 https://www.dailyfx.com/economic-calendar#2021-07-28
  • Heads Up:🇮🇹 Consumer Confidence (JUL) due at 08:00 GMT (15min) Expected: 115.5 Previous: 115.1 https://www.dailyfx.com/economic-calendar#2021-07-28
S&P 500, DAX Fundamental Forecast

S&P 500, DAX Fundamental Forecast

Justin McQueen, Analyst
SPX Price Chart

Equity Analysis and News

  • S&P 500 | There is Never Just One Rate Cut
  • DAX | Largest Daily Drop in 2019 on Rising Trade Tensions
Index Performance Chart

Source: Thomson Reuters, DailyFX

S&P 500 | There is Never Just One Rate Cut

Last week saw the Federal Reserve cut interest rates for the first time in over a decade. However, markets were left slightly disappointed with Chair Powell’s rather confusing press conference, highlighting that this is a mid-cycle adjustment. That said, based on previous cycles, there is never just one rate cut and we don’t believe it will be the case this time round as FFR futures price a near certainty that interest rates will be lowered again in September. With the Fed now easing policy amid trade war risks, President Trump was able to quickly take advantage of this by announcing that an additional 10% tariff rate will be placed on $300bln worth of Chinese goods, consequently weighing on risk appetite. A trade deal happening this year is becoming increasingly unlikely as eyes now focus on Beijing and how they will retaliate to the latest escalation.

Fed Target Rate Probabilities Chart

CME FedWatch (Interest Rate Expectations)

S&P 500 Price Chart: Daily Time Frame (Dec 2017 – Aug 2019)

S&P 500 Price Chart

DAX | Largest Daily Drop in 2019 on Rising Trade Tensions

With the trade war ceasefire broken, the DAX has posted its largest daily loss in 2019 to close out the week. Focus now turns towards China, in which an inevitable retaliation may well indeed weigh on risk appetite further. Alongside this, with the technical break below trendline support eyes are for a test of 11500.

DAX Price Chart: Daily Time Frame (Dec 2017 – Aug 2019)

DAX Price Chart

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