The US Federal Reserve will hold a meeting on Wednesday. The announcement of the What are interest rates in trading? When one party lends mo... More decision and FOMC member forecasts will be accompanied by Jerome Powell’s press conference. The upcoming event is already having a big impact on equities, the USD, and other markets.
Why is it important?
US economic performance deteriorated in Q1 and the What is a central bank? A central bank is an institution r... More may acknowledge that. The Federal Reserve is to update its economic forecasts. The new outlook will likely include fewer rate hikes (one or none) as well as projections of slower economic growth. Economists also expect the regulator to end its program of reducing the What is a balance sheet? A balance sheet is a summary of t... More, although there are different opinions on when this might happen.
With central banks around the world pulling away from policy tightening, the market’s risk sentiment improves and the demand for riskier assets (i.e. stocks, higher-yielding currencies) goes up.
For What are value stocks? A value company is a company that app... More
Companies don’t like higher borrowing costs, so the pause in the Fed’s hiking cycle seems like a good thing.
S&P 500 is on its way to show the best quarter since Q3 of 2009. The index is up by 13% since the start of the year. At the same time, What are value stocks? A value company is a company that app... More should view the situation with some degree of cautiousness. If the What is a market trend in trading? A market trend is the ten... More of the weakening global growth gathers pace, stocks may start feeling the negative pressure. For instance, US GDP growth cooled from 3.4% in Q3 to 2.6% in Q4. Further deterioration will hurt companies’ earnings and thus put a stop on stocks’ advance.
It’s necessary to understand that the market’s expectations ahead of the Federal Reserve’s meeting are very pronounced: traders think that the Fed will sound cautious and underline that it’s in no hurry to raise What is interest? In finance and trading, interest is a fe... More rates. Notice that the How do stock markets work? A stock market is a financial ... More has been actively gaining ahead of the event and the Fed officials have already made a In forex trading, a lot is the standard unit to measure the... More of The term dovish generally describes an economic outlook towa... More statements. As a result, we face the risk of ‘buy the rumor, sell the fact’ scenario.
Last week the index took off from the 50-week MA in the 2,745 area (it’s a What are "support levels" in trading? A support level is a... More level now) and went past What are "resistance" levels in trading? A resistance level ... More at 2,825 climbing to a 5-month high on Monday. January highs at 2,880 are now in focus.