IC Markets Global: Daily market analysis(2023-12-14)

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This post was finally written by ICMarkets to 2024-2-2 23:40 edit

IC Markets Global: Daily market analysis(2023-12-14)554 / author:ICMarkets / PostsID:1727099

Stock market soaring, Federal Reserve expected to cut interest rates - Dow Jones index up1.4%

Yesterday, as Jerome Powell told the market that the Federal Reserve was unlikely to further raise interest rates in this cycle, and the Federal Reserve's forecast showed that they expected to cut rates in the next year75One basis point, the US stock market rose sharply again. Prior to this announcement, the three major players in the United Statesstock market indexHas been trading steadily, but quickly rose after the announcement, with the Dow Jones index rising1.4%, closing at its highest level in nearly two years, S&P and Nasdaq also reacted similarly on the same day, rising respectively1.37%and1.38%. US treasury bond bond yields fell sharply, benchmark10The annual yield has dropped to a level of8The lowest level since the month has fallen18Basis points,2The annual period has declined29Basis points, falling to since6The weakest level since the beginning of the month. The US dollar has also been hit, and the currency index has fallen0.83%This trend continued until the opening of Asia.goldRapidly rising to2000Above US dollars, it quickly rose on the same day40The US dollar, while oil is still trading at levels close to multi month lows.

The US dollar has plummeted0.8%

The US dollar fell sharply overnight after the Federal Reserve followed suit and sent a dovish early Christmas gift to the market. The risk market strongly reacted, and the stock market surged on the same day, but there was a negative impact onforeign exchangeFor dollar bulls in the field, it is definitely not good news because the US dollar has fallen among major peers0.83%. Some major currency pairs, such as the new trading day starting today, are in key positions, and traders expect significant fluctuations in the coming trading periods. The Australian dollar, New Zealand dollar, and Japanese yen appear to be on the verge of volatility during Asian trading, with the Swiss franc potentially experiencing significant movements, especially after the European market opens. Prior to the latest interest rate decision announced by the Swiss Central Bank today, the Swiss franc was at some sensitive technical level against the US dollar and other currencies.

Traders welcome an important day

After a relatively calm few days, the storm finally swept through the financial markets. The Federal Reserve's actions may cause market reactions to persist for several trading hours. In addition to the influence of the Federal Reserve, there are also some important primary data releases today, as well as releases from no less than three major central banks. The Asian market will once again focus on the Australian market and release the latest employment data. However, the European market will become the focus, first with the interest rate announcement from the Swiss National Bank, followed by the Bank of England and the European Central Bank. Finally, in the New York market, the latest retail sales data and weekly unemployment benefit claims data will be released.