-
FOMC leaves rates unchanged, QE to end in March
-
Powell does not rule rate hikes at every meeting
-
US indices erase gains
-
USD gains, GOLD drops
-
BoC leaves rates unchanged
-
Brent tests $89 per barrel
-
Bitcoin pulls back to $37,000 after test of $39,000
Stock markets in Europe traded higher today with German DAX, French CAC, and Italian MIB gaining over 2%. Russian indices continued to recover with major benchmarks adding over 2-3%. US futures also gained during the major part of the day but things changed following the FOMC decision announcement and Powell's presser. While the Fed decided not to change rates yet, Powell said that rates could be hiked on every meeting if the situation requires it as there is plenty of room for rate hikes without hurting the labour market. US dollar gained on outlook for quicker tightening with EURUSD pulling back from 1.1300 area. Gold was pressured by USD strengthening and broke below the $1,830 support zone after the Fed meeting.
Outside of Fed meeting, investors were also offered a decision from the Bank of Canada today. No change was made to interest rates but just a Fed, BoC said that it would be appropriate to hike them soon. CAD weakened following the decision as rate hike was 70% priced in by derivatives markets.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appMicrosoft reported solid Q4 2021 earnings providing support for the tech sector during the European session and the first half of the Wall Street session. However, tech indices erased gains following FOMC.
Brent moved above $89 per barrel in spite of an unexpected inventory build signaled by DoE report today. Part of gains was erased later on but crude continues to trade above $88.
Cryptocurrencies traded higher for the large part of the day with Bitcoin testing $39,000 area. However, coins took a hit during FOMC like other risk assets and Bitcoin dropped back to $37,000.
US100 made a failed attempt of breaking above 14,450 pts resistance zone today. Hawkish comments from Powell pressured indices in the evening pushing US100 back to the upward trendline. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
