Fed's Rate Hike Looms Over US30

US30 is likely to remain volatile in the coming weeks, as investors assess the risks to the economy. The latest macroeconomic news is not good for the market, with consumer sentiment falling and inflation remaining high. Fed officials have signaled that they are likely to raise interest rates by 0.75% next week, which could further dampen economic activity. Technical traders should be aware of these risks and use fundamental analysis to make informed trading decisions.

Comment:

Fundamental Analysis:

The Fed has repeatedly stated its intention to bring inflation back down to 2% without triggering a recession, and it appears that they are sticking to this narrative. As of today, the federal funds rate is 5.25%.

Comment:

This trade forecast is now invalid and closed due to the following macroeconomic factors:

Positive economic data: On Monday, the US Department of Commerce released data showing that US retail sales rose 0.6% in August, beating expectations. This was seen as a sign that the US economy is still growing at a healthy pace.

Strong corporate earnings: On Tuesday, a number of large US companies reported strong earnings results, including Apple, Microsoft, and Amazon. This also boosted investor sentiment.

Weaker US dollar: On Wednesday, the US dollar weakened against a basket of other currencies. This made US stocks more attractive to foreign investors.

Rising oil prices: On Thursday, oil prices rose to their highest level in over a year. This was seen as a positive sign for the US economy, as it could boost corporate profits.