The uncertainty about the interest rate hike by the Fed this year remained. Yesterday's minutes of the latest Fed's meeting did not produce any clarity on the Fed's monetary policy. The Fed said that it wanted to have more time to see if the slowdown in the global economy will have a negative effect on the U.S. economy. FOMC members noted that the U.S. labour market continued to improve, while the inflation remained at low levels.
Fed officials continued to say this week that the interest rate hike by the Fed this year is still possible.
Despite the strengthening of the U.S. labour market, the U.S. growth seems to slow down. According to the ISM data this week, the growth in the services sector declined in September.
Market participants are awaiting the release of the U.S. inflation and industrial production data next week. If the data is weaker than expected, it will add to speculation that the Fed will not start raising its interest rates this year.
Stock markets were driven by higher oil prices this week. Oil prices rose on expectations that the global oil output will decline and the global oil demand will rise. Expectations were supported by comments by OPEC Secretary-General Abdalla Salem el-Badri. He said on Tuesday that oil prices will rebound due to lower oil investments. el-Badri expects global oil investments to drop by 22.4% this year.
It is likely that stock markets remain volatile on oil prices next week.
The foreign exchange market is also likely to remain volatile as market participants will look for further clues for the Fed's monetary policy.
It is likely that the currency pair EURUSD will test the high of September 18 at $1.1459, maybe even the level of $1.1500, if the U.S. economic data will negative and there will be no negative news from the Eurozone.
If the U.S. economic data is positive and in case of the negative news from the Eurozone, the currency pair EURUSD may test the level of $1.1200.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.