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
EUR/USD
Bearish
Oil - US Crude
Bearish
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
Wall Street
Bullish
Gold
Bearish
GBP/USD
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
USD/JPY
Bearish
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
  • 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/3FsnNdo7VK https://t.co/lC69rPbkcJ
  • $AUDUSD just weakened slightly following disappointing Chinese industrial production and retail sales data What is the Aussie facing over the next 24 hours and heading into next week? #AUD https://www.dailyfx.com/forex/market_alert/2020/08/14/Australian-Dollar-Outlook-Eyes-SP-500-Retail-Sales-After-Chinese-Data.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/b9pmxMkp8o
  • 🇨🇳 Unemployment Rate (JUL) Actual: 5.7% Previous: 5.7% https://www.dailyfx.com/economic-calendar#2020-08-14
  • 🇨🇳 Fixed Asset Investment (YTD) YoY (JUL) Actual: -1.6% Expected: -1.6% Previous: -3.1% https://www.dailyfx.com/economic-calendar#2020-08-14
  • 🇨🇳 Industrial Production YoY (JUL) Actual: 4.8% Expected: 5.1% Previous: 4.8% https://www.dailyfx.com/economic-calendar#2020-08-14
  • 🇨🇳 Retail Sales YoY (JUL) Actual: -1.1% Expected: 0.1% Previous: -1.8% https://www.dailyfx.com/economic-calendar#2020-08-14
  • Heads Up:🇨🇳 Unemployment Rate (JUL) due at 02:00 GMT (15min) Previous: 5.7% https://www.dailyfx.com/economic-calendar#2020-08-14
  • Heads Up:🇨🇳 Fixed Asset Investment (YTD) YoY (JUL) due at 02:00 GMT (15min) Expected: -1.6% Previous: -3.1% https://www.dailyfx.com/economic-calendar#2020-08-14
  • Heads Up:🇨🇳 Industrial Production YoY (JUL) due at 02:00 GMT (15min) Expected: 5.1% Previous: 4.8% https://www.dailyfx.com/economic-calendar#2020-08-14
  • Heads Up:🇨🇳 Retail Sales YoY (JUL) due at 02:00 GMT (15min) Expected: 0.1% Previous: -1.8% https://www.dailyfx.com/economic-calendar#2020-08-14
Dow Jones, Nasdaq 100, S&P 500 Forecasts Following June Fed Meeting

Dow Jones, Nasdaq 100, S&P 500 Forecasts Following June Fed Meeting

2020-06-10 21:00:00
Peter Hanks, Analyst
Share:

Dow Jones, Nasdaq 100, S&P 500 Price Outlook:

Dow Jones, Nasdaq 100, S&P 500 Forecasts Following June Fed Meeting

The Federal Open Market Committee announced it would leave the Federal Funds Rate unchanged at 0.0 percent to 0.25 percent at its June 10 meeting, aligning with market expectations. Subsequent remarks from Chairman Powell, however, struck a slightly more dovish tone than I suspect most market participants were expecting, and the surprise could translate to further gains for the Dow Jones, Nasdaq 100 and S&P 500 down the line.

Nasdaq 100 Price Chart: 4 – Hour Time Frame (January – June)

Nasdaq 100 price chart after fomc meeting

Earlier this week the Nasdaq 100 registered a fresh record high as it broke above 10,000 for the first time in history,a feat many attributed to the accommodative policy from the Federal Reserve. To be sure, Chairman Powell’s remarks would suggest balance sheet expansion and low interest rates are here to stay, at least until the economy returns nearer pre-covid levels.

Massive unemployment, economic uncertainty and stubbornly subdued inflation are all reasons the Fed evidenced for opting into sustaining “easier” monetary policy, and that continuation may spillover into the three major US indices. As I noted in my webinar, the technical outlook for each of the indices looks encouraging and the comments from Chairman Powell have undoubtedly eased concerns on the fundamental side – in the short and medium terms at least – as longer-term concerns will remain a topic of discussion.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Peter Hanks
Traits of Successful Traders
Get My Guide

While the current monetary policy regime may create problems down the line, it seems the market is content to accept the risks as long as sentiment remains intact. To that end, Chairman Powell conceded the central bank and its officials are not in the business of tracking or forecasting accurate stock prices, so it is up to the market to decide where the true value resides.

Since the market has been willing to bid stocks higher at every turn up to this point, I see little reason bullish appetite will change overnight unless there is a degree of “buy the rumor, sell the news” or yet another unexpected threat to economic activity occurs. Elsewhere, recent price trends like US Dollar weakness and gold strength may also persist as the market begins to accept a longer than expected period of monetary accommodation.

Forex for Beginners
Forex for Beginners
Recommended by Peter Hanks
Forex for Beginners
Get My Guide

At the end of the day, the mantra “don’t fight the Fed” exists for a reason, and it seems the central bank has played a winning hand up to this stage, so attempting to call their bluff at every turn may prove costly. In the meantime, follow @PeterHanksFX on Twitter for updates.

--Written by Peter Hanks, Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

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

DISCLOSURES

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.