US Interest Rate Decison Leaves Markets In Daze

By Xtrade Academy - on December 20, 2018

The Fed Rate hike leaves Markets in a daze. As per predictions the Fed’s actions of hiking rates by 0.25% to 2.50% although viewed by many as the best decision in light of intended interference from president Trump and turn of affairs in global growth. The forward guidance turned out to be too predictive pointing to a stalemate in stimulating growth.
Market participants abandoned the Greenback (USD) in search of more fluid options. While others turn to some of the safe-havens like the JPY, CHF, not including GOLD today. Others turned to non-Fiat meaning Cryptocurrencies will be likely surging between 2%-4% on almost all tokens and coins, which have already fallen 98% in recent times.
Global Markets:
Global markets are in depression following the hyped up US Fed Rate Hike Wednesday. Most investors believe the USD has temporally been shot in the hip with a quasi-projection to future rate hikes.
US 30: Lost its tedious uptrend dropping from 24,058 to 23,323.66 and trying to break support levels of 23,162.64
Germany 30: Was at 10,627.2 at the time of print nose-diving to 10,551.0 from highs of 10,774.0
Italy 40: Was reportedly seen at 18,540.00 down 2.26% from 18,825 further downsides to 18,485 could be very possible by mid-day.
UK100: Acted as predicted, Wednesday before slipping, 1.16% by the time of print 07:20GMT from ups of 6,691.75, heading to possible lows of 6,644.50 with lags around (6,685.00-6,688.00).
Commodities:
Oil: With more US Shale oil in a glutted market, prices slipped from the over-exaggerated climb Wednesday as some investors tried to turn a disappointing report into a positive story rising to 48.17 before settling between 47.51 and 46.02 possible downside to 45.50 is possible. until some more investors realize its still a safe heave and race back to it, moving prices back up to 1,265.00 or more
Gold: Swung between 1,245.50-1,253.70 downside to 1,242.00 is very possible.
Currencies: 
EUR/USD: The pair continues to stand firm attempting to head to 1.1495 from 1.1372
GBP/USD: GBP hopes to recoup some of the losses from yesterday’s lows of 1.2607 to highs of 1.2720.
USD/JPY: Meanwhile the USD loss favor to the JPY. dropping from 112.60 to 111.81 at the time of print 07:28 GMT and heading to lows of 111.65
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Related Links:
https://www.cnbc.com/2018/12/20/federal-reserve-in-sweet-spot-to-hike-rates-to-neutral-robert-heller.html
https://www.cnbc.com/2018/12/20/trade-war-finance-execs-less-confident-on-china-economy-deloitte.html
https://www.cnbc.com/2018/12/19/fed-delivers-.html
 
 
 

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