Plan Future Trading Strategist on The Latest Market News.
Need to Know Current Trending Financial Market News.
Keeping tabs on the latest market news in the financial sector allows you to set smart trading strategies. Presently there is much going on in Africa, the United States and the United Kingdom which make huge waves in the markets that affect currency and commodity prices. If you are trading forex beware of volatility especially with political events currently happening in the USA. The Dollar may plummet reminiscent of Brexit over the next few weeks and careful watch andf conservative trading is vital!
Commodity Market News…
Crude oil supply concerns weigh on oil prices!
Crude oil continued to tumble yesterday as the reports that Iran and Iraq refuse to cut production, as per the agreement that OPEC made at their last meeting, continue to be priced in. Crude is expected to remain subdued until the production issues are resolved with Goldman Sachs saying that oil could reach $40 p/b if OPEC fails to reach a convincing agreement.
With no interest rate hike on the horizon, the USD might see a decrease in value. Given the inverse relationship between the USD and gold, trading experts assert that gold prices might soar. However, if the USD will increase in value – the effect on gold will be opposite.
Forex Market News…
Data dependent GBPUSD, poised to breakout!
With the GBPUSD ranging between 1.2150 and 1.2250 for the last few trading sessions, today’s Manufacturing PMI data might just be the catalyst for a breakout. The figure, expected at 54.6, and a better than expected release will likely see the GBPUSD break north of the 1.2250 resistance line as the GBP strengthens while if the figure is worse than expected the GBP/USD will likely break south of the 1.2150 support level as the GBP weakens.
Investor Market News…
Investors run for cover as political uncertainty weighs heavy.
Safe haven buying has commenced on the back of political uncertainty as polls begin to show Trump as the leading candidate in the presidential race for the first time since May as per the polls conducted by ABC News/ Washington Post. This has resulted in buying of safe haven assets such as the EUR, JPY and GOLD being purchased at the expense of the USD which has weekend across the board as we also see falling equity prices.
Will the USA Increase Rates?
With the probability of the FED lifting rates today priced in as highly unlikely, any surprises in today’s Federal Funds Rate release, expected unchanged at <0.5%, and/or the FOMC Statement will have major consequences.
If the FED lifts rates or gives markets cause to believe that a December rate hike is a certainty, we would see the USD strengthen across the board while commodities and equities plummet and vice versa if they cut rates or imply that the December lift off is off the table.
Brexit Market News… ( BBC)
Sterling has risen sharply following the High Court ruling on Article 50, while the FTSE 100 has fallen back. The court ruling has “made triggering Brexit a lot trickier and has given sterling a massive shot in the arm”, said Neil Wilson at ETX Capital. At the close of London trade, the pound was up 1.1% at $1.2438, but the FTSE 100 fell 0.8% to 6,790.5 points.
Sterling was also bolstered after the Bank of England predicted higher growth for this year and 2017. The Bank left interest rates on hold at 0.25% as expected, but also sharply raised its inflation forecast for next year.
The pound climbed 1.1% against the euro to €1.1214. Many traders hope that the court ruling will at the least delay the process of leaving the EU or reduce the government’s ability to push through a “hard Brexit” that would mean leaving the single market. READ MORE