Fed suggested tapering of bond purchases could begin later this year, catapulting the US Dollar to multi-month highs after it had suffered a downward movement before the bank's minutes.
All Fed members agreed that the bond purchase reduction process must be gradual, and in no case does it link to the latest interest rate rises. The contents of the Fed’s minutes are not made public in advance, and their interpretation usually takes some time, causing market volatility, as was the case yesterday.
Fed's decision to start reversing its monetary policy could also lead to the markets anticipating decisions depending mainly on the upcoming employment and inflation figures.
Despite everything that transpired, EUR/USD ended the day practically with little changes compared to its opening price. The pair got very close to a critical support level located around 1.1704, below which a long downward spiral could open.
Yesterday was also an intense day in the commodity markets, with an accelerated sell-off due to tight liquidity and the increasing mobility restrictions caused by the delta variant.
The technical factor is also essential to consider for instruments such as oil, which has managed to drill down a vital support level located around 66.40, below which sales took flight, causing losses of more than $2. The same thing happened to Copper, the main industrial metal, which usually maintains a close correlation with the North American indices, especially the USA500.
It will be necessary to continue monitoring these crucial movements, which can strongly correlate with stock indices and the currency market.
Sources: Bloomberg, reuters.com.
Utilizatorii/cititorii nu ar trebui să se bazeze exclusiv pe informațiile prezentate aici și ar trebui să facă propriile lor cercetări/analize, prin citirea cercetărilor de bază.
Key Way Investments Ltd nu influențează și nici nu are vreo contribuție la formularea informațiilor conținute de acest document. Conținutul acestui document este generic și nu ia în considerare circumstanțele personale ale fiecărui individ, experiența de investiții sau situația financiară actuală.
Prin urmare, Key Way Investments Ltd nu va accepta nicio responsabilitate pentru eventualele pierderi ale traderilor datorate utilizării sau conținutului informațiilor prezentate în acest document. Performanțele trecute și previziunile nu sunt indicatori fiabili ai rezultatelor viitoare.