Analytical reviews of the Forex market

18.01.2022 11:01

Weekly Focus: U.S. Investors May Not Support Falling Stocks

Investors in the United States return to the stock market after long holidays and Martin Luther King Day celebrations. And this return was sounded by blues music in the market. The S&P 500 broad market index futures fell more than 1% to 4600 points pointing to investors’ worries as the Federal Reserve (Fed) may add some hawkish tunes to the monetary policy during its meeting next week. No significant macroeconomic data is scheduled to be published on January 25-26, when the Federal Open Market Committee (FOMC) will host Fed members that may decide on further monetary tightening.

14.01.2022 12:01

Weekly Summary: A Hawkish Bite at the Capitol

Alexander Boltyan

Lael Brainard, a dedicated dovish member of the Federal Reserve’s (Fed) Federal Open Market Committee, has suddenly turned hawkish before the Senate Banking Committee while it was reviewing her in consideration as a nominee for a second term as vice chair of the Fed. During her testimony Mrs. Brainard said the Fed will use all necessary instruments to lower inflation to the target of 2%. “Our monetary policy is focused on getting inflation back down to 2 percent while sustaining a recovery that includes everyone. This is our most important task,” she said.

11.01.2022 12:01

Weekly Focus: Powell Could Scare Markets

Alexander Boltyan

The S&P 500 index has finally changed its upside pattern to the downside after a recent decline to 4585 points. At this point such a change was very unfortunate since a new downside pattern would almost certainly lead to a decline of the index to 4350-4400 points by the middle of next week. There are many reasons for such a 5-7% decline this week. First, the Federal Reserve’s (Fed) Chairman Jerome Powell will testify on Tuesday before the Banking Committee in the Senate in order to get a clearance for his next term. Mr.

28.12.2021 09:12

Weekly Focus: Santa Rally Is On

Alexander Boltyan

Just a few days left before the New Year, but the Santa rally is wrapping markets. The S&P 500 broad market index delivered 2.0% from last Thursday when the rally was flagged, breaking all-time highs twice. The rise of futures’ prices for S&P 500 paused at around 4800 points which was close to the average historical Santa rally performance for the last 92 years at 2.6%. But investors may bet on more with such a rapid climb of the index. Technically, with a recent breakthrough it may target 4900-5000 points by the middle of next week.

23.12.2021 12:12

Weekly Summary: Santa Claus Rally is Knocking

Queen Denise Keza

Christmas is just outside the door and investors are waiting for Santa Claus to be generous. And they are going to be rewarded as a Santa rally is coming. Omicron variant risks are waning. South Africa, which was the first country to report omicron variant cases, now sees mild infections related to it. Pfizer and Moderna are going to adjust their vaccines to the new variant and are delivering new medications to treat COVID-19, including the Omicron cases. The United States has reported slightly better than previously GDP growth in the Q3 2021, and the Core PCE prices index fell to 4.

21.12.2021 03:12

Christmas Focus: Omicron Is Still Frightening

Queen Denise Keza

Investors are still afraid of the COVID-19 omicron variant as lockdowns spread across Europe. The United Kingdom is looking to introduce a step 2 lockdown measure as the omicron variant cases surge above 93,000 daily. The Netherlands has been in a similar lockdown as the one established in spring 2020 since December 14. Fears of a new wave of lockdowns in other European countries made investors nervous as it may be followed by a severe impact on the global economy. Crude prices fell by 5.0% while stock indices in the United States lost 1.0-1.2%.

03.12.2021 12:12

Weekly Summary: Non-Farm Payrolls Mount Troubles for Investors

Information and Analytical Department of Espero

This uneasy week for the market is closing with the Non-Farm Payrolls report that may bring with it some new worries for investors. Over the past week the news has been filled with reports about the omicron variant of the coronavirus in the United States, the fact that the S&P 500 broad market index fell below 4600, the drop of Brent crude prices to $65 per barrel, the change in direction by the Federal Reserve’s (Fed) chair Jerome Powell who is said to now be in favour of tackling inflation rapidly – each piece of news brings with it a new kind of worry.

30.11.2021 11:11

Weekly Focus: Investors Are Waiting for Powell as Omicron Strikes Back

Information and Analytical Department of Espero

The U.S. stock market was taken by storm again after a powerful rebound on Monday with the S&P 500 index jumping up by 1.5% to 4674 points. But all the gains were wiped out on Tuesday as the index fell to 4586 points. The reason for such disappointment came after a statement from the Moderna CEO Stephan Bancel was released saying he considers that the existing vaccines will be less effective against the new COVID-19 Omicron variant. "I think it's going to be a material drop. I just don't know how much because we need to wait for the data. But all the scientists I've talked to . . .

26.11.2021 12:11

Weekly Summary: New COVID-19 Variant Amplified Risk off Mode

Information and Analytical Department of Espero

The way in which the week is ending was definitely not expected as we see that the market is in a total “risk off” mode amid the spread of the new horrific COVID-19 variant B.1.1.529 (no code-name has been given to it by the World Health Organisation so far) which originated in South Africa. This variant has been described as the worst one that scientists have seen so far, and they also said that it is likely to be immune to all vaccines created to date. Investors have responded with a sell offs in the stock market across all countries.

23.11.2021 11:11

Weekly Focus: Powell Cheers Intentions to Tackle Inflation

Information and Analytical Department of Espero

The nomination of the new Federal Reserve (Fed) Chairman came as no surprise. Jerome Powell won the race for Chair. U.S. President Joe Biden announced his decision on Monday night. The second nominee, Lael Brainard, was offered the job of Powell’s Deputy. The Senate will have no objections against approving Powell, who is a Republican and who would certainly be supported by his fellow party members. So, the approval of Mr. Powell for a new term could be considered as done. The market’s negative reaction to Powell’s nomination is expected.