The Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!
US: reopening economy
On Thursday, US President announced that he is going to gradually steer the country out of the “full armor” state. He shared a three-stage plan which suggests that 29 states are now qualified to lift most of the quarantine measures within a month’s time.
“A national shutdown is not a sustainable long-term solution”.
The authorities of the US are trying to minimize the time during which the country stays economically frozen because each day under quarantine costs a lot and contributes to the accumulating risk of recession. That is understandable.
The question is whether the states are ready for that: in some of them, the infections are still rising. Plus there is still a big problem to actually measure these infections because the testing methodology and equipment are not yet fully adequate.
Another question is: how effective this plan may be if the federal government practically shifts the responsibility to set the guidelines and monitor the lifting of the virus restrictions to the state authorities. There is generally very little detail and even less federal support presented in the several-page document Donald Trump referred to.
Although similar doubts were expressed by observers and the prevailing reaction among them was unconvinced, the market took this news as a relatively positive sign. The US dollar eased a bit, gold eased a lot, stocks climbed.
That day has come, guys! The Fed will hold a meeting at 21:00 GMT+3. It can be a highly impactful event. The markets expect the bank to hint about the timing of tapering.
A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
Commodities (iron ore, oil) and commodity-linked currencies (AUD, CAD) surged. West Texas Intermediate has reached $75 a barrel, while Brent rose to the highest mark since October 2018.
Although Jerome Powell’s speech sounded hawkish on Wednesday, September 22, markets did not get scared and the main stock indices got bought back…
Turkey’s central bank governor was at a crossroads: to hold interest rates and take a risk to be fired like it was for three governors before him, or to comply with the president, to cut rates, and to risk the market. Let’s find out, how to react to the rate cut.