The market was a little bit un-nervy today as once again the FOMC spoke to the markets again, and well, well, well it was certainly what many expected. The FED is now looking to lift rates off the astronomical lows they have been for some time and many are expecting a lift off come September. For the most part this is expected and has been forecast for some time, and the FED has a transparency policy now days so not to cause any sudden shocks to the markets.
This translated across the board in buying for the USD - against the EUR at least. The EURUSD slipped to 1.0986 on the charts as markets looked to buy up the USD on the positive news. This was despite news that GFK consumer sentiment out of Germany was flat at 10.1; well in line with expectations. Further support can be found at 1.0949 but it's unlikely we would see further shifts lower at this stage unless USD pressure can be sustained.
Moving across the S&P 500 and many would believe that a possible rise in interest rates would have a negative effect - well on the contrary. For the most part the market was relatively upbeat from the FED on the prospect of the US economy improving further, but also we had the Chinese equity problems start to slack off a little so easing pressure globally on equities. Resistance can be now found at 2105.91 on the charts, and going forward I would expect to see higher highs at this stage. It's been a long time coming but the FOMC talking up the prospect of interest rates fills me with confidence we may actually see something happen.
The Kiwi dollar was once again left in the lurch, as Wheeler took to the stage today to talk down the prospect of further aggressive interest rate cuts. A welcome relief to housing - but not so much for exporters who struggled to see the benefit from the statements. The kiwi battled resistance at 0.6719 on the charts, and going forward I would expect pressure to force lower lows - but it may take some time after the recent RBNZ comments today,
Crude inventories were a shocker for the market recently as they came in at -4.20M barrels. Demand has looked to certainly slack of a little later, especially as the large players look to play it safe in the hyper aggressive world.
Crude prices have managed to have a quick reprieve on the charts at presently as the jumped up to 48.87. This was led by the shortage in supply at present, but Iran is on the horizon hence the lack of a large jump on positive numbers for bullish traders. Despite this large rise I personally believe we will see further falls to 44.33 on the charts and in my mind this would be a very strong level that many are trading off. For the most part the trend is always going to be your friend, and in this case it most certainly can be
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