CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
About Our Global Companies
Valutrades_LogoSpot
Valutrades_SYLogoSpot

Company

Valutrades Limited - a company incorporated in England with company number 07939901. View more information here.
Valutrades (Seychelles) Limited - a company incorporated in the Seychelles with company number 8423648-1.

Regulation

Regulated by the FCA (Fincancial Conduct Authority). Financial Services Register Number 586541.
Regulated by the FSA (Financial Services Authority). Regulatory Number SD028.

Max Leverage

30:1 (or up to 500:1 for Professional clients, click here to find out more about professional client status)
Up to 500:1

Country

United Kingdom
Seychelles

Negative Balance Protection

Yes
Yes

Back to Blog

What's in the Feds Bazooka?

   

Today at 7pm UK time (6pm GMT) the US Federal Reserve (FOMC) will announce their latest interest rate decision which is widely expected to keep rates unchanged at 0.25%

Marriner_S._Eccles_Federal_Reserve_Board_Building

The Fed has previously said it will do whatever it takes to support the US economy and they have backed this up with previous emergency meeting rate cuts as well as huge lending and bond buying programs.

All that remains now is to see what else they can throw in with the kitchen sink.

Bullish Case

The Fed could cut rates to 0%, enhance asset purchases to other products other than bonds and tweak the lending programs to further underpin the banks. This is probably the most likely scenario given the Feds commitment to do whatever it takes and could lead to a short term pop up in equities and USD.

Bearish Case

The less likely to occur but more likely to shock the market could be a lack of action and admission that bullets are running out. Either such move would be a shock to investors and could see a immediate and sharp drop in equities and USD.

Economic Calendar

 

Disclaimer:

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.

This post was written by Graeme Watkins

CEO Valutrades Limited, Graeme Watkins is an FX and CFD market veteran with more than 10 years experience. Key roles include management, senior systems and controls, sales, project management and operations. Graeme has help significant roles for both brokerages and technology platforms.

Comments