šMarkets are awaiting todayās decision from the U.S. Federal Bank regarding the interest rate.
ā Current expectations are that the Fed will raise rates by 25 basis points.
š”And personally, I expect a hold.
šBecause the rise in inflation resulting from the big increase in oil prices due to the closure of the Strait of Hormuz to global maritime navigation during the war will not allow the U.S. Federal Bank to cut rates as Trump wishes.
āļøTherefore, the likelihood of raising rates to combat inflation remains the highest.
šMarket impact of the decision:
1-If rates are raised, weāll see a decline in the prices of all stocks and gold, along with a strong rally in the dollar.
2-Holding rates will cause gold to rise and the dollar to fall, because the market has already priced in the rate hike based on expectations.
3-Rate cuts will be very positive for the stock market, giving it a major boost, and weāll notice a strong rise in gold.
šŗAs for oil prices, they remain tied to current geopolitical events related to the Strait of Hormuz and the Bab el-Mandeb.
šTips and recommendations:
š„-Donāt be swayed by emotions when executing any trade during the hours when the U.S. Federal Bank members meet, or when Kevin speaks and during the speech walkthrough after the meeting, due to the high volatility in the markets during this period.
ā Current expectations are that the Fed will raise rates by 25 basis points.
š”And personally, I expect a hold.
šBecause the rise in inflation resulting from the big increase in oil prices due to the closure of the Strait of Hormuz to global maritime navigation during the war will not allow the U.S. Federal Bank to cut rates as Trump wishes.
āļøTherefore, the likelihood of raising rates to combat inflation remains the highest.
šMarket impact of the decision:
1-If rates are raised, weāll see a decline in the prices of all stocks and gold, along with a strong rally in the dollar.
2-Holding rates will cause gold to rise and the dollar to fall, because the market has already priced in the rate hike based on expectations.
3-Rate cuts will be very positive for the stock market, giving it a major boost, and weāll notice a strong rise in gold.
šŗAs for oil prices, they remain tied to current geopolitical events related to the Strait of Hormuz and the Bab el-Mandeb.
šTips and recommendations:
š„-Donāt be swayed by emotions when executing any trade during the hours when the U.S. Federal Bank members meet, or when Kevin speaks and during the speech walkthrough after the meeting, due to the high volatility in the markets during this period.