After last week’s vital FOMC meeting, find here the post Fed rate hike CrowdTrading insights. Gain here your Trading outlook for the week ahead from Trade360, the home of CrowdTrading – your guide to the latest developing market trends.
For the first time in nearly ten tears, the US Fed raised interest rates – a vote of confidence in the future of the US economy.
Now standing at 0.5%, and with inflation expected to creep up towards 2%, further hikes may yet be on the cards…
The post Fed rate hike CrowdTrading insights kicks off with Euro. By the end of the week, however, the Euro was back on the offensive. The EUR/USD registered a 42 pip rise on Friday, to close at $1.0868.
Make a note to Trade on the US Final GDP on Tuesday at 13:30 GMT. The forecast is for a rise of 1.9%, which should benefit the Dollar.
The GBP/USD pair finished the week with a 6 pip drop, to close at $1.4895.
UK Final GDP is worth a look on Wednesday at 09.30 GMT. The forecast predicts growth of 0.50%. Any improvement on that should power up the Pound.
Don’t miss the US Unemployment Claims figure, to be released on Thursday at 13:30 GMT. Last week new unemployment claims fell to 271,000 from a five-month high of 282,000, indicating growing US economic strength, and confirming the Fed’s optimism. This week’s forecast is for 270,000 claims, but with seasonal uncertainty likely to play a part, there could be opportunities for significant divergence and currency movement.
The AUD/USD pair finished the week strongly, up 47 pips, to 0.7176, while the USD/CAD also prospered, up 20 pips to $1.3957CAD.
Canadian GDP is scheduled to be announced on Wednesday at 13:30 GMT, along with monthly Retail Sales. September saw a 0.5% contraction, because of the global oil price freefall. Most analysts are pessimistic about Canadian economic performance this time round.
As for the post Fed rate hike CrowdTrading insights on Crude oil, the commodity continues to crater, Brent Oil dropped 0.49%, to close at $34.73 a barrel. Meanwhile West Texas Intermediate (WTI) fell 0.63% on Friday, closing at $36.88 a barrel.
After a poor week, Gold corrected upwards slightly by market close. Comex Gold rose 1.47%, to finish at $1,065.00 per ounce. GoldSpot also improved by 1.44%, to $1,066.25 an ounce.
The US’s big three indices ended the week on a downward trajectory. The DOW Jones fell 2.10% to 17,128.55, the NASDAQ dropped 1.59% to 4,923.08 and the S&P 500 shed 1.78%, down to 2,005.55.
It’s well worth monitoring US Durable Goods Orders, to be announced on Wednesday at 13:30 GMT. October saw a healthy figure of 3.0% in October after two disappointing months, with rising demand for aeroplanes being the key factor. Discounting transportation, core durable orders were up 0.5%, better than expectations. This time around, overall Durable orders are likely to fall 0.6%, with Core orders predicted to grow 0.1%.