As expected, the Fed has kept the target for the its funds rate unchanged at 0.25% to 0.5% showing its worries about the economic outlook because of global economic slowdown and the financial development saying that "it is closely monitoring global economic and financial developments assessing their implications for the labor market and inflation, and for the balance of risks to the outlook".
As expected also, The Fed's clarified waiting and see stance for assessment lowered the chance of watching interest rate hiking this quarter, while the market is waiting by the end of the week to see preliminary annualized GDP growth in the fourth quarter of last year by only 0.8%, after growth by 2% in the third quarter.
The US equities shrugged off the robust rising of US new homes sales in December by 0.544m yearly to react negatively to the Fed's dovish tone, while the US treasuries prices were rising driving their yields down but this stance has been reversed during today Asian session with risk appetite improving again sending the gold to be traded near $1120 during the Asian session, after spiking to $1127.80 following the Fed's outcome.
USDJPY could rise up above 119 during the Asian session, while EURUSD kept its trading stance close to 1.088 waiting for the preliminary release of Germany Jan CPI which is expected to show today yearly rising by 0.55 after increasing in December by 0.3%.
Have a good day
Walid Salah El din
Chief Tech Analyst of Trade-24
As expected also, The Fed's clarified waiting and see stance for assessment lowered the chance of watching interest rate hiking this quarter, while the market is waiting by the end of the week to see preliminary annualized GDP growth in the fourth quarter of last year by only 0.8%, after growth by 2% in the third quarter.
The US equities shrugged off the robust rising of US new homes sales in December by 0.544m yearly to react negatively to the Fed's dovish tone, while the US treasuries prices were rising driving their yields down but this stance has been reversed during today Asian session with risk appetite improving again sending the gold to be traded near $1120 during the Asian session, after spiking to $1127.80 following the Fed's outcome.
USDJPY could rise up above 119 during the Asian session, while EURUSD kept its trading stance close to 1.088 waiting for the preliminary release of Germany Jan CPI which is expected to show today yearly rising by 0.55 after increasing in December by 0.3%.
Have a good day
Walid Salah El din
Chief Tech Analyst of Trade-24
As expected, The Fed highlighted the global economic slowdown risks
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