Nasdaq falls on Jackson Hole speech, US Fed expects “some pain”, gold falls on strong USD [Video]
|Did you see what Jerome Powell did to the Stock market?
I’m Brad Alexander and in this week’s Market Blast Fundamentals let’s take a look at EURUSD, Gold (XAUUSD), the USD Index (USDIndex), the DAX (DE40), the Hang Seng (HK50), and the NASDAQ (US100).
Last week we talked about the annual Jackson Hole, Wyoming symposium of global economic leaders.
Now you know how important it is as we see this huge fall in stock indices like the NASDAQ which opened with a gap this morning, and a big jump in the USD Index, which also opened with a gap.
Why? Quite simply, the Fed will continue to raise Interest Rates until inflation is under control.
Interestingly, the DAX had filled that gap despite continuing fears in Germany about an energy crisis and recession, so it shows you the resilience and optimism of some investors, but let’s keep an eye on this.
The Hang Seng in Hong Kong opened with a gap as well but price action has filled the gap and more.
The European Central Bank, as well, made it clear that they will keep raising Interest Rates to keep fighting Inflation and the EUR rose quickly against everything except the USD which is just as strong, for the same reason.
By the way, EURUSD is still below par.
The strength of USD saw price action on Gold falling with the next key level of support below at $1715.
Natural Gas opened with a gap to the upside with the Nord Stream Pipeline being closed for 3 days for maintenance this week and an impending energy crisis in Europe.
Getting back to Jerome Powell and the Fed; they and everyone else in our world will be watching the US Non-Farm Payrolls this week.
Fingers crossed!
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