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Trends & Analysis
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Crude oil becomes volatile as Russia relaxes ban

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Where could the bulls save the S&P 500?

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Week Ahead Preview: 25th of September

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Gold recovers slightly after a sharp decline

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GBP/USD falls on Bank of England’s decision

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FedEx shares surge despite revenue miss

Trends & Analysis
News

Crude oil becomes volatile as Russia relaxes ban

News

Where could the bulls save the S&P 500?

News

Week Ahead Preview: 25th of September

News

Gold recovers slightly after a sharp decline

News

GBP/USD falls on Bank of England’s decision

News

FedEx shares surge despite revenue miss


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Federal Reserve System definition

The Federal Reserve System, commonly known as the Fed, is the central banking system of the United States. It is composed of the Board of Governors, the Federal Open Market Committee (FOMC), and the 12 regional Federal Reserve Banks. The Fed manages monetary policies, interest rates, and money supply in the country. It also supervises and regulates local banks and provides financial services to the US government and financial institutions.

 

The Fed and financial markets

The Fed’s main goal is to set and carry out monetary policies to maintain the United States’ financial stability. Their decisions can therefore have substantial impact on the financial markets such as stocks, forex, bonds, and commodities.

 

The Fed can impact the bond and forex markets through its control of short-term interest rates. By adjusting the federal funds rate (the interest rate at which banks lend and borrow federal reserves from each other), it can influence corporate bond rates. By raising interest rates, it can make the US dollar more attractive, increasing the currency’s demand and thus its exchange rate in forex.

 

Additionally, the Fed can impact market sentiment by increasing or decreasing investor confidence. For example, if the Fed announces that it will cut interest rates in the future, investors may anticipate an economic downturn and adjust their investment portfolios and strategies accordingly. On the other hand, if it announces it will raise interest rates, investors may anticipate economic growth and adjust their portfolios and strategies accordingly.

 

Start trading with ADSS

ADSS offers a range of global markets for traders, with opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

 

See all glossary trading terms


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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.