In a call scheduled for January 25, 00:30 am GMT+2, the Tesla Inc. team will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
How to Trade on FOMC Press Conference?
2022-12-15 • Updated
What will happen?
FOMC press conference is among the primary methods the Fed uses to communicate with investors regarding monetary policy. It covers in detail the factors that affected the most recent interest rate and other policy decisions, along with commentary about economic conditions such as the future growth outlook and inflation. Most importantly, it provides clues regarding future monetary policy.
Today, on September 22, traders await FOMC’s tapering decision as it will make a huge impact on the markets. In this article let’s discuss two possible variants of the FOMC statement and imagine how they will affect the market.
- Dovish statement. Powell says that the US economy still needs stimulus and doesn’t call any dates when the tapering might begin. In this case, the US dollar will get weaker.
- Hawkish statement. Powell calls the possible date of stimulus tapering (the further the date, the shorter will be the effect on the markets) and says that the government needs to take control over inflation. In this case, the US dollar strengthens.
Asset’s technical overview
US dollar index daily chart
In the 1st scenario, the US dollar index will drop down to 92.3 support level, in case, of breakout the next target will be 91.5. USD/*** will fall. ***/USD will rise.
In the 2nd scenario, the US dollar index will surge to 93.7 and 94.4 resistance levels. USD/*** will rise. ***/USD will fall.
Gold (XAU/USD) daily chart
In the 1st scenario, XAU/USD will surge with the main target at $1839.
In the 2nd scenario, XAU/USD might drop down and touch the $1680 support level.
S&P500 (US500) daily chart
1st scenario will send S&P500 to 4450 and 4480 resistance levels.
2nd scenario will open a road to 4250 and 4150 support levels.
Bitcoin daily chart
1st scenario will make bulls push Bitcoin up to $47 000.
2nd scenario will send the main cryptocurrency down to $37 600 and probably even $30 000 levels.
The Netflix stock (NFLX), with a market cap of $145.17B and a whooping 10 000+% rise since its inception 16 years ago, experienced some turbulence for a short period last year while trading around the $250 share price. However, the NFLX stock quickly recovered and rose to over $300 towards the end of the previous quarter of 2022.
The Q4 earnings season has been interesting, mainly because of the turbulent global economic outlook. On this premise, analysts forecast a disappointing performance for several stocks ahead of the Q4 earnings report publishing.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.