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Wall Street Navigates a Maze of Economic Signals and Policy Nuances

Market Update - Daniel Ang The Accidental Trader Traders Academy International 8

As Wall Street navigates through a maze of economic signals and policy nuances, a vigilant and nuanced approach is essential for traders and investors alike. With a slew of economic data and policy announcements in the pipeline, the coming weeks promise to be a critical juncture for market participants.

Markets Tense as Wall Street Slides, Awaiting Fed’s Decisions Amid Economic Shifts

Market Update - Daniel Ang The Accidental Trader Traders Academy International 11

Markets showcased unease as the FOMC’s policy meeting loomed, causing Wall Street indices to retreat. The US housing market faced a sharper decline than predicted, while the currency domain narrated dynamic tales, particularly concerning the Dollar, AUD, and CAD. In Asia, the Yen’s stance ahead of BOJ’s meeting drew attention. Commodities like crude oil experienced flux, while cryptocurrencies like Bitcoin and Ethereum held firm ground.

Labour Day Halts Most Markets Except for Canada and the U.S.

Market Update - Daniel Ang The Accidental Trader Traders Academy International 2

Despite expectations of a rate hike this week, the US stock market continued to surge. The Fed is expected to raise the Fed Funds Rate by 25 basis points, but US bond market pricing indicates that the Fed may pause until November. The Dollar rose after inflation grew at a slower pace in March, and gold ended a notch higher for April. The Yen fell across the board after the Bank of Japan maintained ultra-low interest rates, while WTI closed Friday’s session up 2.7%.

FOMC Meetings and the Impact on Forex Markets

Jerome Powell took office as chairman of the Board of Governors of the Federal Reserve System in February 2018. He was sworn in on May 23, 2022 for a second term as Chair ending May 15, 2026. Powell served as an assistant secretary and as undersecretary of the Treasury under President George H.W. Bush. There, he was responsible for policy on financial institutions, the Treasury debt market, and related areas. Before joining the administration, he worked as a lawyer and investment banker in New York City.

The Federal Open Market Committee (FOMC) is an important body within the Federal Reserve System that sets monetary policy in the United States. As a Forex trader, it’s important to pay attention to the FOMC and its decisions, as they can have a significant impact on the market.

GBP/USD Rally May Have Peaked, Eurozone’s Outlook & USD Weakness

Sterling’s surge to pre-Covid-19 highs against the U.S. dollar Wednesday, when GBP/USD hit 1.3268 according to FactSet, may not happen again, says ABN Amro. The Dutch bank expects GBP/USD to fall as investors switch to a greater focus on Brexit uncertainty and weaker U.K. data, combined with a less negative sentiment towards the dollar, says […]