Hey Valutraders! Did you see what Jerome Powell did to the Stock market?
Subscribe to Free Valutrades Signals at https://www.valutrades.com/en/trading-signals
I’m Brad Alexander and in this week’s Market Blast Fundamentals let’s take a look at EURUSD, Gold (XAUUSD), the USD Index (USDIndex), the DAX (DE40), the Hang Seng (HK50), and the NASDAQ (US100).
Last week we talked about the annual Jackson Hole, Wyoming symposium of global economic leaders.
Now you know how important it is as we see this huge fall in stock indices like the NASDAQ which opened with a gap this morning, and a big jump in the USD Index, which also opened with a gap.
Why? Quite simply, the Fed will continue to raise Interest Rates until inflation is under control.
Interestingly, the DAX had filled that gap despite continuing fears in Germany about an energy crisis and recession, so it shows you the resilience and optimism of some investors, but let’s keep an eye on this.
The Hang Seng in Hong Kong opened with a gap as well but price action has filled the gap and more.
The European Central Bank, as well, made it clear that they will keep raising Interest Rates to keep fighting Inflation and the EUR rose quickly against everything except the USD which is just as strong, for the same reason.
By the way, EURUSD is still below par.
The strength of USD saw price action on Gold falling with the next key level of support below at $1715.
Natural Gas opened with a gap to the upside with the Nord Stream Pipeline being closed for 3 days for maintenance this week and an impending energy crisis in Europe.
Getting back to Jerome Powell and the Fed; they and everyone else in our world will be watching the US Non-Farm Payrolls this week.
Thanks for watching and don’t forget to subscribe to Valutrades Signals and the link will be in this video’s description below.
Also, subscribe to our YouTube channel and register on the Valutrades website to get notifications on new content as it happens.
That’s all for now. Happy trading with Valutrades and we will see you next time.
CFDs and FX are leveraged products and your capital may be at risk.
The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.