Last updated: May 3rd, 2017 at 09:58 pm
Quite simply we move into a week that the market has built up as being crucial to the near term outlook for financial markets. Market commentators are struggling to come up with a consensus of any note because the decision is so finely balanced. I discuss the cogent arguments that arise both for and against the Federal Reserve engaging the first US rate hike since 2006. How are markets going to react in the run up to the decision and what are the crucial factors to think about?
It is not difficult to understand that the Fed will dominate traders’ thoughts this week, however how are the forex markets set up moving into the announcement. There are some really interesting developments on the charts of the euro and also Cable, are these telling us something? I give a technical analysis of the outlook and the key levels to watch for. What are the supports and resistances, but also what will the direction be if the Fed decides to make a move?
What are the key factors impacting on equity markets? The Federal Reserve decision will clearly have a significant impact across the major markets and what could a rate hike mean across various markets. The German DAX Xetra has been an extremely volatile market in a recent consolidation, but what are the technical levels to watch out for if the Fed makes a move. Furthermore, I undergo a technical analysis of the FTSE 100 and also look at the key support and resistance levels to watch out for.
The commodity markets have been acting as a crucial barometer of market sentiment of late and I look into their outlook moving into the Fed decision. Gold has started to trend once more but what but where could this run go to? Sentiment on US Treasuries has also been extremely interesting with the bond markets telling us a lot, but how are they positioned moving into the FOMC decision?