Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
Weekly Market Preview
Friday, Jan 26, 2023
Last week, the investor’s focus was on the US GDP data (Q4-23) which pleasantly surprised with a growth rate of 3.3%, surpassing the anticipated 2%. Despite a decline from 4.9% in (Q3-23) the fourth-quarter growth figure indicates sustained consumer spending capability. Meanwhile, the European Central Bank meeting unfolded as expected, maintaining interest rate unchanged at 4%.
This week, investors are eagerly anticipating key economic data, notably the European GDP data for (Q4-23). Expectations suggest a potential contraction of the European economy by 0.1%, following a similar contraction in the third quarter. A negative result would thrust the Eurozone into technical recession, intensifying pressure on the European Central Bank to accelerate its plans of rate cuts. Conversely, any growth (above 0%) would signal an escape from recession, possibly deferring the expected interest rate cuts to the June meeting.
Another pivotal event on the horizon is the Federal Reserve’s interest rate decision, projected to maintain rates at 5.5%. However, investors are keenly observing the Fed’s upcoming policy, particularly seeking hints in Mr. Powell’s speech regarding the potential timeline for initiating interest rate reductions this year. Any suggestion of a possible start in the March meeting (though improbable) could negatively impact US dollar prices.
It’s noteworthy that the Fed Chair might reiterate its data dependence policy, based on the evolution of inflation rates and labour market data. At the week’s end, the US jobs report for December will be released, with expectations hinting at the addition of 162,000 jobs. A figure surpassing this would provide grounds for Federal Reserve members to maintain higher for longer interest rates, benefiting US dollar prices. Conversely, any lower-than-expected reading would not favour the strength of the dollar.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities L.L.C – S.P.C (“ADSS”), a limited liability company – sole proprietorship company incorporated under United Arab Emirates law. Registered under Commercial License No.1190047. ADS Securities L.L.C S.P.C is regulated and authorised in the UAE by the Capital Market Authority (CMA) under Category 1 License No.305027 (Trading Broker, Trading and Clearing Broker, Trading Broker in the International Markets, Trading Broker of OTC Derivatives and Currencies in the Spot Market, Financial Products Dealer) and Category 5 License No.20200000217 (Introduction). Registered Office: 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
