Daily summary: Dollar strengthens ahead of Fed decision

5:55 PM September 20, 2022

Yesterday's attempt at a rebound in the stock market came to naught, Tuesday's session brought a return to declines on the world's major stock indices.

The main stock indices from the Old Continent ended Monday's session sharply lower, with the DAX losing 1.03%, while the CAC40 depreciated 1.35% and the FTSE100 lost 0.61%.

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Declines also dominate Wall Street, with all major indices losing more than 1%, and the strongest discount is seen on the Russell2000 index (-1.5%)

It is possible that investors are getting rid of stocks in fear of tomorrow's Fed meeting.

Tomorrow we will learn the decision on interest rates in the US, macroeconomic forecasts will also be published.

Christine Lagarde, during an ongoing speech, asserted the ECB's will to fight inflation. The speech did not bring any important updates to the ECB's recent rhetoric.

Rising U.S. bond yields support the dollar, gains on 10-year notes accelerated after breaking above the June peak at 3.5%
The worst performing of the major currencies today is the New Zealand dollar, which is losing about 1% against the USD, the NZDUSD currency pair remains in a strong downtrend, today the rate fell below the 0.5900 level.

The stronger dollar is also reflected in the price of commodities, precious metals such as gold, silver, and palladium are under selling pressure today, while on the plus side, platinum quotations remain on the upside.

On the other hand, yesterday's reaction in crude oil was halted and today black gold is trading lower, with both Brent and WTI losing around 1.5%.

Worse sentiment also persists on the major cryptocurrencies, despite the fact that a hammer formation formed on Bitcoin yesterday, which could herald a rebound, the main digital currency is down about 2.5% today. Ethereum is also losing about 2%

Although a hammer formation appeared on the D1 chart of ETHEREUM (as on BITCOIN), so today's session brings a continuation of declines. If the aforementioned formation is negated and the price falls below the support zone at $1280, the repricing may take a turn for the worse. The next important support falls only at the round level of $1,000. Important resistance, on the other hand, is located at the level of $1445. Source: xStation5

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