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
Asset Watch
Wednesday, November 22, 2023
The minutes from the recent Federal Reserve meeting, conducted earlier this month, highlighted a consensus among Open Market Committee members to approach changes in US interest rates cautiously. Any potential rate increases were tied to progress in reaching inflation targets. Discussions also encompassed the impact of elevated interest rates on households and businesses. The market response to the FOMC minutes was muted given that the meeting preceded the release of the US jobs report for October which revealed a weakening labor market, and the October inflation report which indicated a decline in US inflation levels.
As a result, the prevailing sentiment in the markets suggests that US interest rates have likely peaked. Current expectations indicate that potential adjustments in monetary policy pointing would be towards rates cut in the upcoming year. Consequently, the US dollar retreated, losing around 3% of its value since the recent release of the US inflation report. Conversely, stock and commodity markets, including gold, experienced gains. Euro prices also surged, reaching their highest levels in several months.
Chart source ADSS Platform
On November 14, the euro exhibited an uptick against the US dollar, with some traders closing short positions and others initiating longs. Since then, prices have followed an ascending trajectory, establishing higher highs and higher lows.
As of now, the EUR/USD is navigating within a trading zone between 1.0981 – 1.0873. A daily close above the high end of the zone signifies robust upward momentum, potentially propelling prices towards 1.1060. Nevertheless, the resistance level of 1.1020 should be considered.
Conversely, a daily close below the low end of the mentioned trading zone suggests hesitancy among traders to sustain the upward push, possibly prompting sellers to take the initiative and steer prices back towards 1.0789. However, the support level at 1.0831 should be kept in focus.
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 LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 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.
