Forex Today: US Fed, Bank of England Both Expected to Cut Rates by 0.25% – 07 November 2024
There will be central bank policy meetings in two key G7 economies today: the
1. The US Federal Reserve and the
2. Markets have continued reacting to the unexpectedly strong Republican clean sweep of the executive and legislature in the US general election last Tuesday, pricing in the effect of Trump and Congressional Republican’s likely policies. As Trump wishes to stimulate the economy, higher stock prices are expected, and this has pushed all the major US equity indices such as the S&P 500, the NASDAQ 100, and the Dow Jones Industrial Average (technically not an index) to new record highs. Trump’s policies are seen as likely to stoke inflationary pressures, which raises the rate curve and makes Fed rate cuts less likely, pushing up the US Dollar (although there are initial signs this move in the greenback may have run out of momentum). Finally, Trump and the
3. The Trump trade is mostly seen as follows:
1. Long US stock market indices such as the S&P 500, or the NASDAQ 100.
2. Long of the US Dollar (maybe USD/JPY as the Yen is relatively weak). This is the weakest and most uncertain part of the Trump trade,
3. Long of Bitcoin.
4. Long of US Treasury Yields (the CME index offers very affordable micro futures).
In the Forex market, the New Zealand Dollar has been the strongest major currency since today’s
For additional & up-to-date info on brokers please see our ;Forex brokers list. ;
[geotargetedbrokercarousel]
Original Source DailyForex.com provides daily fundamental and technical analysis and signals for those looking to trade based on trends in the currency markets.
Bank of England cuts main interest rate by a quarter-point to 4.75% after UK inflation falls
Ethos Brings on Industry Vet Matt Fowler as Chief Distribution Officer
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News