• It was not quite a ‘Taper Tantrum’ but markets have got their way after the FOMC opted to pause a rate hike, possibly until 2016 in light of the ongoing problems in China. The reaction from stock markets has been mixed, but the dollar has been decidedly weaker since the announcement.
• The bigger winners are commodities and the Australian dollar – Why? It was feared that a rate hike would further muddy the waters around China, having a global impact on world trade. Traders are hoping that the delayed in increasing rates will help China and thereforeits dependents which include commodities and commodity related currencies such as the Australian dollar.
• Gold is also on the rise as the dollar backs off.
• Yen pairs have been on the back foot as the dollar continues to soften.
Coming up today:
• MPC member Haldane speaks at 12.05, with Canadian CPI data at 13.30 the only other item of note today.
Trade Idea:
• The Australian dollar has recovered well from the August pressure and yesterday’s Fed decision could add further momentum.
Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
Fed Soothes Markets With Rate Hike Pause
Morning Report: 08.00 London
• It was not quite a ‘Taper Tantrum’ but markets have got their way after the FOMC opted to pause a rate hike, possibly until 2016 in light of the ongoing problems in China. The reaction from stock markets has been mixed, but the dollar has been decidedly weaker since the announcement.
• The bigger winners are commodities and the Australian dollar – Why? It was feared that a rate hike would further muddy the waters around China, having a global impact on world trade. Traders are hoping that the delayed in increasing rates will help China and thereforeits dependents which include commodities and commodity related currencies such as the Australian dollar.
• Gold is also on the rise as the dollar backs off.
• Yen pairs have been on the back foot as the dollar continues to soften.
Coming up today:
• MPC member Haldane speaks at 12.05, with Canadian CPI data at 13.30 the only other item of note today.
Trade Idea:
• The Australian dollar has recovered well from the August pressure and yesterday’s Fed decision could add further momentum.
A good way to play this is a HIGHER trade predicting that the AUD/USD will close above 0.7300 in 10 days time for a potential return of 154%.
Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
Summary:
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