16th March 2017
Good morning. After all the build up the Fed delivered a 0.25% rate rise as expected, and everything turned into a sea of green – pretty much all markets rose, which helped the Dax and gold longs that we had on. Gold has surprised though by continuing the rise overnight and is now at 1226 – didn’t expect it to rise so strongly., especially as indices were also rising. Stocks rose and bond yields fell as investors viewed the statement from the Federal Open Market Committee and Yellen’s remarks afterward as a sign that the Fed isn’t in a hurry to remove monetary stimulus. The FOMC raised the target range for the federal funds rate to 0.75 percent to 1 percent, as expected, but Yellen’s lack of urgency to snuff out inflation was a surprise.
Speaking to reporters after the Fed’s quarter percentage-point move on Wednesday, Yellen said the central bank was willing to tolerate inflation temporarily overshootingits 2 percent goal and that it intended to keep its policy accommodative for “some time.”
“The simple message is the economy’s doing well. We have confidence in the robustness of the economy and its resilience to shocks,” she said.
FTSE 100 Outlook and Prediction
It will be interesting to see how today unfolds after that news and out of hours rise last night. The first level of resistance is at X where we have a fib level. So we might see some stalling here and then a dip down to partially (or fully!) close the gap from yesterdays close. Resistance above here ranges from X to X so this whole area might see a bit of profit taking/speculative shorts, though of course they are still against the prevailing trend which is, of course, bullish. Above X we are looking at X and then a cluster of levels around X on the daily chart – a level that might temper the current rises.
On the support side of the coin today, we have X initially, on both the 2 hour Hull moving average and the daily pivot at X, whilst below this X and an outside chance of X. Generally though I expect the day to be bullish as the initial reaction to the rate rise was positive, and so that sentiment should continue for a bit longer, as the US powerhouse does well, generally the rest of the world follows.
We have our rate decision being announced by the BoE at midday – expected to remain at 0.25%.
You are probably wondering why I have XXXX instead of numbers. Unfortunately people are copying this content and passing it off as their own. As that’s not fair on members who are paying for this content I wont be publicly posting my levels of interest for the moment.
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