Market Crash Incoming?
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
Powell Might Save Markets Again
Today is the most important day for the markets, as, at 20:00 MT, the Federal Reserve will decide on the key rate. Moreover, the Statement will be followed by Jerome Powell's speech at 20:30 MT.
Today's Events
14:15 GMT+2, US ADP Non-Farm Employment Change
20:00 GMT+2, FOMC Statement
20:30 GMT+2, FOMC Press Conference
Powell will turn the risk mode on
Markets are pricing in a 75-basis-points rate hike at today's meeting. Thus, that's different from what will boost the volatility. Trades await any hits from the Fed regarding the rate hike slowdown. Markets still need to decide on the next Fed step at the December meeting. The chance of another 75-bps hike in December is at 50.3%. Another 44.4% relates to a 50-point rate hike. Therefore, the Powell Speech can significantly turn the markets one way or another regarding the future actions of the Fed. We suggest traders wait until Jerome Powell's speech finishes and follow a settled trend.
EURUSD, H4 chart
EURUSD is consolidating above the descending trend line, an overall positive sign for the pair. We expect the pair to skyrocket to the parity level (1.0000) by the end of Powell's press conference.
However, if the price breaks below 0.9830, it might fall to 0.9600.
Other news worth following:
- The US Treasury intends to verify the deal on the purchase of Twitter. They want to check if Musk has connections with the authorities of other states and foreign investors.
- The Musk-Twitter deal has revived huge crowd interest in Dogecoin (DOGEUSD). The price of the coin and the number of discussions have skyrocketed. Musk continues to pump the coin with his tweets. Musk has previously said he's considering introducing DOGE payments on Twitter if he buys the social network.
- Iran may launch a military operation against Saudi Arabia in the coming hours, - Wall Street Journal. Saudi Arabia shared intelligence with the US and warned of an imminent Iranian attack on targets in the kingdom.
- Japanese Central Bank Governor Kuroda stated that the economy needs further stimulation. Moreover, he added the Central Bank would increase stimulus without any doubt if necessary.
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