Fed aftermath

Frank Walbaum FX Strategies.Asia

Important news for the day

Thu. 11th. 01:30 CET AU Unemployment rate.
Thu, 11th, 09:30 CET CH SNB rate decision.
Thu, 11th, 14:30 CET US Unemployment claims.

Fed aftermath

The Federal Reserve did cut interest rates by 25 basis points as initially expected. This was the third meeting in a row, where the interest rate had been reduced. Yet, the meeting was seemingly divided among the bankers. Hiring slowed and the jobless rate increased, which caused a different approach among the team. ome members objected to the rate cut, while one member urged for a bigger cut of 50 basis points. Whether there will be another rate cut at the upcoming meeting next year remains unclear as Powell pointed out that it remains unsure. Current estimates state that next year only a 25 basis points is being expected. Meanwhile stock markets initially rallied but lost some steam in the early hours of today's’ trading as profit taking kicked in.

Market talk

The rate cut in the US caused the Dollar to weaken and hence the risk sentiment to rise. The current correction in stock markets might continue, though. The S&P 500 and Nasdaq both broke lower today and even trade below yesterday’s lows. A potential bigger correction might be now on the cards if the price is not able rise again above the current support zones. The crypto market also remains under pressure and might weaken again. Today, traders will focus on the interest rate decision of the Swiss National Bank. The USDCHF currency pair might hence be poised to weaken further.

Tendencies in the markets

Equities correcting, USD weaker, crypto sideways, oil weaker, Silver positive, Gold positive.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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