Business Ideas Feed – European Session December 15, 2021 | Business News Today

Business Ideas Feed – European Session December 15, 2021

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It’s all about the Fed today and nothing else matters too much so far.

As such, expect European trade to be more strained and nervous, if anything else. The market will only engage in real moves once we make the Fed decision, so don’t read much about what’s going on right now.

The dollar remains relatively stable as it has done since the start of the week. But expect a potentially more volatile move to follow later in the day.

There will be a few key points to watch out for as we digest the Fed’s decision. Omicron’s fears are unlikely to derail the Fed, so the important thing is whether they will speed up the reduction schedule. On top of that, the dot charts for next year will also offer insight into the outlook among decision makers.

Of course, omicron may turn out to be more serious than feared at the end of the day. However, a faster cut will not end the recovery, and most importantly, it provides flexibility for the Fed – in case the omicron is softer than expected.

Considering all of the points covered above, here are some key business potentials:

  • Gold: Obviously given the circumstances of the dollar and yields. A more hawkish Fed will undoubtedly weigh on the yellow metal, techniques already pinning it. A push to the September lows around $ 1,721-22 could be seen in the above scenario. On the flip side, a more curled up Fed could give impetus to a push above $ 1,800. Add this technical movement to the favorable year-end seasons, gold could really shine.
  • Actions: Of course, a faster reduction offers the possibility of faster rate increases. As such, a hawkish Fed will only weigh on equity sentiment. That said, the bearish buyers have been quick to look past all of this in recent weeks and it wouldn’t surprise me to see major dips this week being bought over the past couple of weeks.
  • Dollar: A little simpler here. A more hawkish Fed will allow the dollar to maintain its good shape as the FOMC meeting approaches. Since stocks are likely to be affected in such a scenario, the dollar’s play is likely to be more attractive against commodity currencies; vice versa of course.

What is your view of the market now? Share your thoughts / ideas with the ForexLive community here.


Business Ideas Feed – European Session December 15, 2021

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