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Interestrates

GBP Strength?News came out on Forex Factory, a News article regarding the Bank of England. Apparently they are going to raiser interest rates for the Second Month in a row. The last time they did this was 2004. This is a big deal because of the cost of money has increased. This can be attributed to the Federal Reserve for adding more Poker Chips to the Table. Inflation. We have moved bullish nearly 100 pips since this rumor came out. Looks like people are buying the rumor. I believe this news may be a catalyst for a more bullish next few weeks. It may encourage bullish sentiment in the markets, continurbting to a rebound in other risk on assets. possibly the dollar cools down. anyways, cheers everyone. Like and Follow for more content like this
Long
by ShrewdCatfx
How Will Increased Interest Rates in the USD Affect Crypto? Now that the Federal Reserve seems committed to raising interest rates in response to inflation (something that they denied was a problem during 2021) we're going to see a shift in the way money is talked about in the near future. What does this mean for crypto, and the greater economy, overall? - The US growth and assets markets have been driven strongly by the availability of cheap loans since 2008, an era that is now coming to a close because the only way to avoid a hyper-inflationary economy in the USD right now is to raise interest rates. - The historic rate at which the US Treasury printed money -- largely justified through COVID woes -- is extreme and it's TBD whether or not the proposed rates will be enough to offset its after-effects. (Was initially 2%, now proposed to ~3%.) The government is broke and has no other choice. - Higher interest rates are generally bad for "risk-takers" in the market, but good for people who like to save. The idea of the government and financial sectors actively encouraging people to save, however, has been missing from the mainstream narratives for a while. Whether or not the institutions can adapt fast enough to form a holistic plan in the midst of the turmoil is yet to be seen. The condition has been around long enough that this scenario will be new to even "experienced" financial experts out there. - This presents a new economic landscape/opportunity for entrepreneurs and investors looking to capitalize on the change. But in this environment, the "slow growth" approach is likely to be more successful than the marketing-driven hype markets that has dominated the scene for the last 10-15 years. (Yes, even in crypto. ex. SHIB, NFT-hype.) - Generally speaking, countries with higher inflation rates tend to have higher crypto adoption rates as well. Will the same happen to crypto, NFTs, and metaverse -based assets? Time will tell -- but now crypto at least has the title of an "alternative asset" with the potential for high growth, especially since it's not affected by supply chain issues that traditional assets are tied into right now. - Since 2021 there have been a lot of crypto-based projects that have tied itself into the USD markets through traditional legal arrangements and contracts (as opposed to "pure" crypto investments that aren't concerned with what the traditional markets are doing right now) -- this money is more likely to run in parallel to the outcomes that fiat money will face as the interest rates start to ramp up in 2022.
Long
by RyanTanaka
How Will Increased Interest Rates in the USD Affect Crypto? Now that the Federal Reserve seems committed to raising interest rates in response to inflation (something that they denied was a problem during 2021) we're going to see a shift in the way money is talked about in the near future. What does this mean for crypto, and the greater economy, overall? - The US growth and assets markets have been driven strongly by the availability of cheap loans since 2008, an era that is now coming to a close because the only way to avoid a hyper-inflationary economy in the USD right now is to raise interest rates. - The historic rate at which the US Treasury printed money -- largely justified through COVID woes -- is extreme and it's TBD whether or not the proposed rates will be enough to offset its after-effects. (Was initially 2%, now proposed to ~3%.) The government is broke and has no other choice. - Higher interest rates are generally bad for "risk-takers" in the market, but good for people who like to save. The idea of the government and financial sectors actively encouraging people to save, however, has been missing from the mainstream narratives for a while. Whether or not the institutions can adapt fast enough to form a holistic plan in the midst of the turmoil is yet to be seen. The condition has been around long enough that this scenario will be new to even "experienced" financial experts out there. - This presents a new economic landscape/opportunity for entrepreneurs and investors looking to capitalize on the change. But in this environment, the "slow growth" approach is likely to be more successful than the marketing-driven hype markets that has dominated the scene for the last 10-15 years. (Yes, even in crypto. ex. SHIB, NFT-hype.) - Generally speaking, countries with higher inflation rates tend to have higher crypto adoption rates as well. Will the same happen to crypto, NFTs, and metaverse -based assets? Time will tell -- but now crypto at least has the title of an "alternative asset" with the potential for high growth, especially since it's not affected by supply chain issues that traditional assets are tied into right now. - Since 2021 there have been a lot of crypto-based projects that have tied itself into the USD markets through traditional legal arrangements and contracts (as opposed to "pure" crypto investments that aren't concerned with what the traditional markets are doing right now) -- this money is more likely to run in parallel to the outcomes that fiat money will face as the interest rates start to ramp up in 2022.
Long
by RyanTanaka
EURO Rate Hike Expected on Feb-3-2022 /// Currently Jan-31-22We have seen a news release come out on forex factory around NY open about the expected Interest rate decision by the Bank of England. It turns out that it is indeed expected of the BOE to raise interest rates for the second time in a row. This has not occurred since 2004. This is positive news for the EURO as inflation is not necessarily a bad thing. The cost of money goes up in England, because apparently the economy can handle it, in the eyes of the BOE. This is why it is positive. But personally, I don't hear about wages going up a whole lot. Workers are the backbone of the Economy. Bit concerning. Unsure where price will go from here. Not going to be doing much EURUSD trading as we lead up to the IR announcment on thursday. I'm leaning Bullish I would like to see the Daily candle close solid bullish , as it looks to close in 1Hr, (our first daily close of the week) This would begin our fakeout structure here on EURUSD on the Daily Timeframe
Long
by ShrewdCatfx
11
The raising of interest rates VS BTC price actionHey everyone, Hope everyone is keeping well and in good health. We've seen our crypto portfolios shrink in monetary (FIAT) value. This sucks, but please refrain yourself from making emotional choices here at all times. Above illustration incorporates the recent FED rate hikes between 2015 and 2019 and what the price-action of Bitcoin was in that time period. I know the bears are trying to spread a lot of fear around J. Powell's plans. but always do your own research. Historically speaking, the FED raising interest does not have a negative effect on BTC. Last time the rates hikes began, BTC did over 40x (from around $450 to the 2018 top of nearly $20K) Everyone take care and keep healthy. Thank you for taking the time and until the next time!
BNC:BLX
by impatientmonk
Dollar Index - Nearly at the end of cycle wave 2!We've been tracking the DXY in it's final stages of it's wave C of cycle wave 2. We're looking for this to end around the 98 region, we'd advise patience to confirm the end of this wave 2 before shorting the dollar as it could be a trap and the dollar could push a little higher towards 99 if wave 5 is extended. It is our belief that the Fed has either been signalling too aggresive an approach in raising rates and stopping QE and will have to either be more dovish or reverse course altogether if the economy starts to tank causing the dollar to become more worthless and risk on pairs and commodities flying to the upside in response to this.
TVC:DXYShort
by RAA_Trading
Interest Rate Hike is Imminent, So Does The Drop of Gold Price ?As we all know that the Fed has announced the increase of interest rate is going to come as early as March 2022. Although it is not guaranteed, but usually the price of gold is going down when the interest rate moves higher due to investors switching their funds to other attractive investments such as bonds and stocks. Lets see on the chart, based on the daily chart of Gold, we actually can draw the Elliot Waves and see a possibility of breakout on the bottom of the last line which could trigger a new trend if it happens. At the current point of time, I agree that the breakout has not happened yet. However, due to the interest rate news, I will be more comfortable if the price can drop below the line. All the best!
TVC:GOLDShort
by Anandha_AR
Head and Shoulders Breakdown in BondsAfter breaking down from our head and shoulders pattern, bonds have found support at lower levels and have attempted a rebound. The level 127'08 provided good support confirmed by a green triangle on the KRI, and we saw a nice pivot there. We were able to break above 127'22, the next level above before retracing and stabilizing above 127'08 again. It appears that ZN is attempting to stabilize in this area, as we mentioned in the reports. The Kovach OBV has leveled off, so we anticipate the price action to be range bound between these levels.
CBOT:ZN1!
by quantguy
GO LONG TOMORROW ... AFTER 12 AM EST SNIPER ENTRIES ARE OVER.FOMO doesn't see inflation as a problem right now as CPI is steadily increases. The Feds will tighten policies with the help of Job Biden new appointees. This will cause the US stock market to fall further. A hawkish projected FOMO will cause a major bullish move for DXY-If interest are actually raise tomorrow- Powell has hinted this in the past. An immediate increase may cause a drop that may crash the us stock market. Tomorrow is 100% macroeconomics in full effect. DXY just recovered from an overbought resistance level. Right now is too soon to expect a major bearish move. Retail traders will analyze this as a perfect bearish move. The bullish spike will hit all stop losses.
Long
by Theforexconnect
4
Gold Smashes Through Lower LevelsGold has smashed through lower levels, currently breaking through our levels in the 1780's. We are just above 1777, the floor we anticipated yesterday. We sliced through the entire value area between 1815 and 1795 with ease. The Kovach OBV has taken a turn to the bearish side with the selloff. We anticipate 1777 to hold, as it has provided support in the past, but if not, then 1770 should hold, then there is a vacuum zone to 1759. We should see resistance from 1795, should gold bounce from lower levels.
COMEX:GC1!Short
by quantguy
S&P 500 - IS THIS A CRASH/ OR HEALTHY CORRECTION TO AVERAGEAbove is a chart of the S&P 500 since 1950 (adjusted in Log). The yellow line represents the mean (average) price. It is well known that price naturally gravitates towards the mean, always! Notice how the price of the S&P 500 has not had a significant drop below the mean, since the early 1980's. It had a brief stint below trend, during the 2008 financial crisis. Why has the S&P 500 not had a significant dip below the mean since 1980? Is it a booming economy? Is it an educated and financially literate workforce? I will talk about this in a future post. For now, I just want to pose the question and get the cogs turning. What has caused the high deviation from the mean in the past 30 years, and specifically the past 12? I want to throw this other statistic out there. Interest rates in the 80's were around 16%. Today? The lowest they have ever been. Less than 1%. Form your own hypotheses, and please share them. I'd love to hear your thoughts.
SP:SPXShort
by SJ_CAP
XAUUSD Possible Trend : 01.26.22As you can see after the breaking of the upward trend we expect the price to see lower levels and there's a possibilty of losing the 1834$ key Support ... i can see the price is so bearish and the next bearish targets is : 1832$ , 1826$ , 1823$ , 1809$ and 1800$ ... Follow our other analysis & Feel free to ask any questions you have, we are here to help. ⚠️ This Analysis will be updated ... 👤 Arman Shaban : @ArmanShabanTrading 📅 26.Jan.22 ⚠️(DYOR) ❤️ If you apperciate my work , Please like and comment , It Keeps me motivated to do better ❤️
OANDA:XAUUSDShort
by ArmanShabanTrading
3
How the FOMC Statement could Impact the US DollarThe US dollar is on a broad uptrend, solidifying the 96 handle again. However, as we identified in the report yesterday, 96.24 seems to be providing prohibitive resistance at this time, with a red triangle on the KRI as confirmation. We are getting support in the low 96's, however and we identified 95.82 as the next level of support if this does not hold. Note that we appear to be forming a bull channel, beginning from 94.77 or so. Bull channels tend to break to the downside, hitting a target of 50% of their length. This would put us at about 95.58 or 95.26 in the event of a correction. The rate hike from the fed has largely been priced in, so we could see a bit of a selloff in the US Dollar after the FOMC meeting this afternoon. If we can continue to rally, then 96.44 is the next target.
TVC:DXYShort
by quantguy
EURUSD before FED Today is the day when we expect the Interest Rate decision for the USD. It doesn't matter if there will be any changes, we're still expecting some moves. Because of the news and how risky and unpredictable they are, we suggest looking for an entry only when the news are over! We think that there is a higher probability that the downtrend will continue. If, during the news we see price going up to around 1,1400 in the first minutes and then rejecting those higher levels, then that would be a good sell signal. Quite often, during news you can see how price leaves long wicks in a certain direction to take out the retail traders and it then reverses. That's exactly what we're expecting to see today, and we have to be patient because we don't know in which direction that wick will occur. The only thing that's sure is that there will be a lot of volatility and that our analysis tomorrow will look at the potential opportunities after the news. Good luck!
Short
by ForexTrendline
9
Head and Shoulders Retest - Adding to ShortsHeading into BOC rate decision tomorrow with some analysts forecasting an earlier than expected rate hike, we see USD/CAD rally up into the neckline of that head and shoulders pattern it broke through last week. Partial profits were taken on Thursday last week and now I will be adding back on to this short position. Looking deeper at the rate decision... it has been said for roughly the past year that the BOC would raise rates before The Fed, now that time is near. With The Fed forecasted to be raising rates in March and possibly even raising by 50 basis points, the BOC is being said to likely jump ahead and start with a quarter percent hike this week. A quarter percent hike will shock markets, but not as much as what would happen if The Fed hiked by half a percent. The BOC historically has been more stable and acting ahead of the game in terms of raising rates and being more subtle than The Fed has been.
Short
by TheCaffeinatedTrader
3
EURUSD awaiting FEDTomorrow we have important news for the USD. The interest rate decision together with the press-conference that comes with it are currently the most important news for pretty much all markets. They affect the USD directly and also the rest of the currency pairs. In most cases, the market participants are not trading just before or during the news, but they patiently wait for the end of those events. This is what we are doing right now. Our expectations are that we will see big moves during the news and a possible rise to around 1,1400, followed by rejection afterwards. In case of a signal candle after the news with a long wick to the upside, we will look for potential entries. Before that we're just waiting and analyzing anything that happens. Be patient and good luck!
by ForexTrendline
26
Bonds Rally with the Stock SelloffBonds have gotten a lift off the selloff in stocks. An influx of risk off sentiment gave ZN a much needed lift back to the 128 handle. We had dipped in the very lows of the 127 handle, and were appearing to get ready to break into the 126's, when the fallout from stocks caused a notable risk off shift. We have broken through our level at 127'22. As predicted yesterday, we crossed the vacuum zone and touched 128'10, the first level in the 128 handle, before retracing slightly. At the time of this writing, we are hovering just under this level. We will see if the fallout in stocks continues today, in which case, we can expect higher levels, the next target being 128'24. The Kovach OBV has turned solidly bullish, likely a bit more than it would if this were just a simple relief rally. But if the selloff continues, 127'22 and 127'08 are the next targets to the down side.
CBOT:ZN1!Long
by quantguy