This week sees the FOMC meeting on Tuesday and Wednesday where the Fed is widely expected to cut rates. The question is, how much will they cut by and will it be enough as perceived by the market? Expect volatility around the time of the announcement on Wednesday at 7 pm BST.
Both the S&P 500 and the Nasdaq 100 made new all-time highs this week.
The Dax rallied to test the high printed earlier this month but reversed sharply on Thursday with a big down day.
The Nikkei also rested resistance but also failed to breakout. Resistance was also found at the 60 level on the RSI. If both levels can be decisively broken, we could see a rally to the next level of resistance around 2250.
Gold continues to trade in volatile fashion but remains in a long-term uptrend and above support.
Silver rallied to its highest level since June last year but is finding resistance at the 200-week MA.
The dollar has seen strength return this week, with the Dollar Index rallying higher for six days, making a breakout on the back-adjusted continuous chart to its highest level since March 2013. This move also saw the dollar push the Euro to new lows for the current move. The British Pound also fell to a new low since April 2017.
Interest rate futures
Interest rate futures continue to consolidate in a range not far below recent highs. These markets could see volatile swings this week due to the FOMC meeting. The long-term trend is up for these markets, and considerable weakness will be required before that changes.
The only market in the sector in a current active uptrend is the UK Long Gilt, which this week came close to its all-time high, printed back in August 2016.