logo

FX.co ★ 23.09.2021: US Fed unveils decisions, Wall Street frustrated (S&P500, DXY, USD/CAD, BTC/USD)

23.09.2021: US Fed unveils decisions, Wall Street frustrated (S&P500, DXY, USD/CAD, BTC/USD)

Yesterday, all eyes were on the long-awaited policy meeting of the US Fed. Earlier, it seemed that market participants had already known everything about the Fed’s forward guidance. However, in practice the regulator caught investors off-guard. Meanwhile, the market has not given any response and assessment of the policy decisions yet. Investors have to digest too much mixed information. Hence, the correction is still going on in the U stock market.

As usual on Thursdays, traders monitor weekly updates on US unemployment claims. The data released today could influence market sentiment. The number of first-time jobless claims grew last week higher than expected. So, market participants are certainly discouraged.

Above all else, investors anticipated details from the US Fed about the timeline for tapering economic stimulus. However, the Fed’s Chairman just confirmed this plan, giving no details. Perhaps, when the market absorbs this information, the stock indices will be able to continue growth. The S&P 500 gained 1% to trade at 4,395. The index is likely to trade in the corridor of 4,350 to 4,440 in a few coming days. Meanwhile, analysts are unwilling to make hasty forecasts.

The mixed signals from the US regulator could not provide the US dollar with weighty support, though it seemed obvious in the morning. Thus, the US dollar index remains in a tight range between 92.90 and 93.50. Experts reckon the US currency has a fair chance of climbing above 93.50 that we have predicted earlier.

The Fed’s policy update did not clear up trading sentiment on the currency market. Rising oil prices are setting the tone for the USD/CAD pair that is trading lower. By the way, following the Fed’s announcements, crude oil jumped almost 1%. Due to uncertain trading sentiment on the US dollar, the USD/CAD pair has got stuck in a range of 1.2650 to 1.2800. Currently, the pair is trading at about 1.2670. It is likely to rebound and make an upward correction.

As we foresaw yesterday, the whole crypto market is trading higher as an upward retracement. At the moment, Bitcoin is trading at nearly 43,800 dollars, having rebounded after a sharp decline to 40,000 dollars yesterday. Can we affirm that the crypto market has eventually entered the bullish stage? Probably yes. Bitcoin is approaching the first major resistance at 44,400 dollars. This is a mirror level which used to serve as interim support a couple of days ago. The buyers will find it hard to overcome this strong resistance. They have to create strong buying pressure. Will the digital token be able to break this level? We will see it soon.

Importantly, the Federal Reserve did not announce that it begins scaling down its QE program immediately. At the same time, the regulator sent a message that it would start tapering in the nearest 2-3 months. Moreover, the Fed intends to turn off the printing press by mid-2022. Such statements have triggered irrevocable changes in financial markets. Keep close tabs on market developments on InstaForex TV channel!

* Phân tích thị trường được đăng ở đây nhằm mục đích nâng cao nhận thức của bạn, nhưng không đưa ra hướng dẫn để thực hiện giao dịch
Đi tới danh sách bài viết