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The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Dow Jones Targets Resistance Ahead of FOMC Minutes

The Dow Jones Industrial (US30) index is heading for a key resistance level ahead of FOMC minutes.

The 34,280 level is the obstacle for US stocks, and a dovish Federal Reserve would boost the index.

US30 – Weekly Chart

US30 – Weekly Chart-Nov-23-2022-04-13-41-3298-AM

At the last meeting, the Federal Reserve began to pivot from its aggressive monetary actions by releasing a statement: “...the Committee would take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation.”

The Fed acknowledged in that statement that It had already hiked rates significantly and could slow down the pace of raising rates in the future, waiting to see the effects on inflation. The last reading of inflation and core prices was softer, which will see the Fed pause soon to assess prices later.

Jerome Powell clarified that although the Fed could slow down in the next meeting, the final rate would be more than markets thought.

The Federal Reserve is ready to start smaller interest rate hike increments from next month. According to Cleveland Fed President Loretta Mester, this occurs as it fine-tunes its policy actions over inflation while keeping the economy strong.

“I think we can slow down from 75 at the next meeting. I don’t have a problem with that, I do think that’s very appropriate,” Mester said on CNBC. “But I do think we’re going to have to let the economy tell us going forward what pace we have to be at.”

The Fed raised interest rates by 75 basis points at the fourth consecutive meeting. Comments from a host of policymakers then followed, signalling an expectation to shift towards smaller increases in borrowing costs. This is to allow time for the economy to absorb the swiftest tightening of monetary policy in 40 years.

The central bank’s benchmark lending rate currently sits in a target range of 3.75%-4%. Investors expect a rate increase of 50 basis points at the Fed’s next policy meeting on December 13-14. Wednesday’s FOMC minutes will be an essential step to clarifying that prediction.

Last Updated: 23/11/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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