Frank Walbaum
FX Strategies.Asia
Important news for the day
- Thu, 7th, 13:00 CET UK BoE interest rate decision.
- Thu, 7th, 20:00 CET US Fed interest rate decision.
USD volatility
Today traders should expected a rise in volatility during the interest rate decisions. First, the Bank of England will start their rate decision and it is expected that the Central Bank will cut interest rates to 4.75%. The Dollar is currently showing the biggest gain since 2020. With Trump being elected treasury yields have started to rise again, causing bonds to proceed lower. Potentially imposed new tariffs seem to already play out in markets. Meanwhile the Pound might be prone to further profit taking and could lose against the Dollar, while the positive risk sentiment might still cause the AUD to rise.
Market talk
Gold prices continue their way to lower levels as profit taking continue due to the stronger Greenback. Also Silver has weakened substantially and keeps trading below the recently important support zone of USD 31.50. Oil remains positive but might turn lower as well based on the technical long- term charting pattern. Whether Trump can curb oil prices to support the economy might be in question, whereas the general trend and increase in output numbers might be bearish for the market. Meanwhile crypto markets have jumped higher with most tokens continue to rise. In particular Bitcoin looks positive as it is trading above te USD 75.00 level.
Tendencies in the markets
- Equities positive, USD strong, cryptos stronger, oil sideways, metals weaker, JPY weak.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This Webinar is purely for information purposes. Transactions or orders are for illustrative purposes only and should not be copied by traders. The content has been carefully compiled. However, no liability can be accepted by FX Strategies. Asia and under no circumstances should this material replace a consultation with a certified financial, investment or investment advisor in terms of their accuracy. Further information on our risk warnings can be found on our website under fxstrategies.asia.
Recommended Content
Editors’ Picks
GBP/USD holds recovery gains above 1.2900 ahead of BoE policy decision
GBP/USD builds its recovery momentum above 1.2900 in European trading on Thursday, moving away from its lowest level since mid-August. Traders adjust their positions ahead of the key BoE and Fed monetary policy announcements.
EUR/USD stays firm near 1.0750 amid US Dollar pullback
EUR/USD holds higher ground near 1.0750 in the European session on Thursday. The pair finds support from a broad US Dollar retreat, as traders unwind their Trunp win-inspired USD longs ahead of all-important Fed policy announcements.
Gold price faces challenges due to decline in safe-haven flows, awaits Fed rate decision
Gold price (XAU/USD) faced challenges as the dollar-denominated precious metals struggled due to a stronger US Dollar (USD) following the victory of former President Donald Trump in the US election.
BoE set for a second interest rate cut this year on Thursday
Market consensus points to further easing by the Bank of England's (BoE) upcoming interest rate decision on Thursday. The BoE has held rates steady at 5.00% in the previous gathering, but shifting investor sentiment now suggests a possible 25-basis-point cut this week.
Outlook for the markets under Trump 2.0
On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.