WHAT DO MARKETS EXPECT FROM FOMC MEETING?
As eyes turn to the 59th Presidential elections in the USA, today the Fed is expected to announce the interest rate decision. The speech of Fed Chairman Jerome Powell will be followed afterward. While no interest rate change or a change in future projections is expected from the meeting. At the meeting, it will be monitored whether the Fed will change its stance in the interest policy, which it says will protect until 2023, despite the increasing number of cases in the USA and the preservation of uncertainties regarding the incentive package.
Regarding the details of the Fed meeting, there are expectations that Fed officials may leave an open door to regulate the asset purchase program due to the recently increasing Covid-19 incident. Fed Chairman Jerome Powell, in particular, continues to remain willing to do more to support the economic recovery. In addition, the fact that they will keep the interest rates close to zero until 2023 makes it possible for them to provide support policies for the economy through bond purchase programs. Another point is an additional financial stimulus package that was not approved by the Senate due to the disagreement of Democrats and Republicans before the elections. If this package turns into a more extensive one, especially under the leadership of Biden, the Fed may not need to change its asset purchase program and economic forecasts.
Fed Chairman Powell will likely point out at the press conference tonight that they are ready to do more to support the recovery of the US economy. In addition, it is quite possible to underline the economic uncertainties caused by the outbreak.
After losing power following weak macroeconomic data in the USA, the parity, which was caused by dollar assets, climbed above the 1.18 level. As the outlook is maintained above this level, we are watching the rises around 1.1852 and 1.19 resistance levels. In a possible correction move, while 1.18 level is maintained as the first crossing point, it is worth paying attention to closures below 1.1750 support.
The uncertainty in the markets with the increase of the possibility of Joe Biden in the US Presidential Elections caused an increase in the demand for the Ounce Gold side. Thus, it can be expected that the precious metal, which crosses the 1911 level upwards, will accelerate its rise with the resistance levels of 1930 and 1950. In a possible loosening potential, attacks towards the 1911 level can be met as usual, while closings under 1890 support may cause a change in direction in the precious metal.
The Nasdaq index, which accelerates its rise with the premium course of technology stocks, maintains price mobility above 12,000. Especially, depending on the exceeding of the 12.250 resistance, the record rising level of 12.460 may come into question. In a potential relaxation potential, 12,000 and 11,650 remain as important support points.
In the DAX index, which accelerated its upward momentum with the positive dynamism that occurs across the world indices, it can be expected that the buying potential will continue to increase with 12,600 resistance. In the continuation of this trend, we are watching the 12.965 and 13.225 resistances as priority. However, if the sudden upward movement is subject to a possible correction, it is useful to consider the 12.252 and 11.750 supports.