Fed’s Meeting Minutes strengthens the U.S. Dollar, bonds yields retreat – Market Overview

Fed’s Meeting Minutes strengthens the U.S. Dollar, bonds yields retreat – Market Overview

Fed’s Meeting Minutes published yesterday had an impact on the market, although at first nothing groundbreaking was expected from this event.

According to what has been published, some Fed members agreed that setting dates for the so-called "tapering" process needs to happen sooner rather than later.

Although no precise dates have been mentioned, the mere fact that it appeared in the Fed minutes was enough for the market to have a reaction. It is becoming increasingly clear that if inflation data continues to show an upward trend, and if the labor market recovers, the Fed will have no choice but to eliminate its stimulus policy gradually. This could significantly impact many financial assets, especially if the policy change has to be carried out earlier than the market and analysts expect.

The rise of the U.S. Dollar

Upon the release of the Fed's minutes, the U.S. Dollar experienced an upward movement. However, much of it has been reversed today, proving that the currency market is in a moment of indecision and lacking clear direction.

U.S. Treasuries fell slightly in price, and yields rose, close to recent highs. Tnote yield is trading at 1.65%, with the bond price in the support zone located around 130.80. Below this level would open the way to further losses that translate into yields above the 1.77% highs. Most investment bank research and market analysts set a target above 2% for the near future.

These expectations of higher interest rates are negatively affecting the stock markets. Indices have lost their bullish moment and are close to falling below critical support levels, potentially changing the current upward trend.

Oil sinks.

Some weakness in the oil market has also been noted in the market. The main cause is progress on the agreement with Iran. If achieved, this would allow Iran to enter the oil market by considerably increasing oil supply.

Because of this, Oil retreated from its two-days high. From a technical point of view, the reference and pivot level are now around 59.50. Below this level, more significant setbacks could happen.

Sources: Bloomberg, reuters.com.

Maklumat/penyelidikan ini disediakan oleh Miguel Ruiz (“tpenganalisis penyelidikan”) dan tidak mengambil kira objektif pelaburan tertentu, keadaan kewangan atau keperluan khusus individu. Penganalisis penyelidikan bertanggungjawab terhadap kandungan laporan penyelidikan ini, samada sebahagian atau keseluruhannya, memperakui bahawa pandangan mengenai syarikat dan sekuriti mereka yang dinyatakan dalam laporan ini jelas mencerminkan pandangan peribadi dan pedagang bertanggungjawab sepenuhnya ke atas risiko mereka sendiri.

Penyelidikan yang disediakan bukanlah pandangan JME Financial Services (Pty) Ltd ataupun undangan untuk melabur dengan JME Financial Services (Pty) Ltd. Penganalisis penyelidikan juga memperakui bahawa tiada sebahagian daripada pampasannya, adalah, atau akan, secara langsung atau tidak langsung, berkaitan dengan cadangan atau pandangan tertentu yang dinyatakan dalam laporan ini.

Sehingga tarikh laporan diterbitkan, penganalisis penyelidikan dan pasangannya dan/atau saudara-mara yang bergantung kepada penganalisis penyelidikan, tidak memegang kepentingan dalam sekuriti yang dicadangkan dalam laporan ini (“kepentingan” termasuk pemilikan langsung atau tidak langsung terhadap sekuriti).

Penganalisis penyelidikan tersebut bukanlah di bawah JME Financial Services (Pty) Ltd. Anda digalakkan mendapatkan nasihat daripada penasihat kewangan bebas mengenai kesesuaian pelaburan, di bawah penglibatan berasingan, seperti yang anda anggap sesuai dengan objektif pelaburan tertentu anda, keadaan kewangan atau keperluan kewangan tertentu sebelum membuat komitmen untuk melabur.

Undang-undang Republik Afrika Selatan akan mengawal sebarang tuntutan yang berkaitan dengan atau yang timbul daripada kandungan maklumat/ penyelidikan yang disediakan.

JME Financial Services (Pty) Ltd, beroperasi sebagai ZA.CAPEX.COM, bertindak sebagai perantara antara pelabur dan Magnasale Trading Ltd, rakan kontrak untuk perbezaan yang dibeli oleh pelabur melalui ZA.CAPEX.COM, yang diberi kuasa dan dikawal selia oleh Cyprus Securities. dan Suruhanjaya Pertukaran dengan nombor lesen 264/15. Magnasale Trading Ltd adalah prinsip utama CFD yang dibeli oleh pelabur.