Crypto

NFP, ISM and BoE Rate Decision -by Ecork

S&P 500, FTSE 100 Analysis and News

  • Standard & Poor’s 500 | Recording the best month since November 2020
  • FTSE 100 |25 or 50 basis points for the Bank of England

Standard & Poor’s 500 | Recording the best month since November 2020

The S&P 500 is on track for its biggest monthly rise since November 2020, up more than 8%. Reminder that inside Q3 stock guide We highlighted that in the 10 worst performing performances in the first half, the third quarter tended to post an average rebound of more than 7%. The best month was July.

Source: Refinitiv, DailyFX

The move came despite the fact that inflation had not peaked in the core CPI and weak activity survey data had indicated a worrying growth outlook. However, the market interpreted Fed Chairman Powell’s pressure as dovish, after the Fed chief removed forward guidance and indicated that the Fed would rely on data. Thus, with the data slipping, markets priced the large rate hikes in favor of a 50 basis point rise at the September meeting. However, the upcoming data in the coming weeks will determine the size of the next price increase and therefore the market’s sensitivity to economic data will increase. As such, traders will be keeping a close eye on upcoming PMI data as well as the latest NFP report.

Markets rule out aggressive rate hikes

S &  P 500, FTSE 100 Week Coming: NFP, ISM, and BoE Rate Decision

Source: CME

On the technical front, a break above the 100DMA opens the door towards resistance at 4180-4200. Meanwhile, support is at 4015 and 3930.

S&P 500 chart: daily time frame

S &  P 500, FTSE 100 Week Coming: NFP, ISM, and BoE Rate Decision

Source: Refinitiv

FTSE 100 | 25 or 50 basis points for the Bank of England

The Bank of England will release its latest monetary policy report, and the question heading into the decision is whether to raise 25 basis points or 50 basis points. While money markets are fully convinced that a move will be 50 basis points with a probability of 86%, the economists surveyed are 50/50 more on this. Thus, we can prepare for another optimistic disappointment from the BoE, which should boost the FTSE 100 index in such an event. Base case scenario, holding on to a 25bp rate hike.

However, with the FTSE 100 surpassing the 100 and 200 DMA indices, there is not much in the way until 7500. However, it is worth noting that we are approaching overbought territory, so the gains from now on may start to slow.

S &  P 500, FTSE 100 Week Coming: NFP, ISM, and BoE Rate Decision

Source: Refinitiv

Whether you are a new or an experienced trader, we have many resources available to help you; Indicators to track Trader moralemy quarter Trading forecastAnalytical and educational Webinars held daily, Trading guides To help you improve your trading performance, and one specifically for those new to forex.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button