trade Fed rate

Key events: Australia - RBA Interest Rate Decision (Sep) USA - CB Consumer Confidence (Sep) US stocks closed higher on Monday as investors paused near record highs, awaiting further signals from the Federal Reserve. The Dow Jones Industrial Average gained 0.15%, the S&P 500 rose 0.28%, and the NASDAQ Composite, which focuses on tech stocks, increased by 0.14%.

Key events: Canada - BoC Interest Rate Decision USA - JOLTs Job Openings (Jul) US stocks declined on Tuesday, with tech stocks facing pressure as the shortened trading week kicked off. Investors are closely watching a series of economic data releases, including the monthly jobs report, which will play a crucial role in shaping the Federal Reserve's upcoming rate decision. The Dow Jones Industrial Average lost 431 points, or 1%, while the S&P 500 fell 0.%. The NASDAQ Composite took a hit, dropping 2.4%.

Key events: UK - CPI (YoY) (Mar) Eurozone - CPI (YoY) (Mar) USA - Crude Oil Inventories Tuesday saw the S&P 500 concluding on a downward trajectory, with investors grappling with erratic fluctuations, particularly after Federal Reserve Chairman Jerome Powell hinted at the necessity of sustained higher rates. This indication followed recent inflation figures that surpassed expectations.

Key events: Eurozone - German GDP (QoQ) (Q4) USA - CB Consumer Confidence (Jan) USA - JOLTs Job Openings (Dec) China - Manufacturing PMI (Jan) The beginning of the week witnessed a cautious tone in European markets, as both the CAC 40 and DAX hovered around last week's record closing highs. Today's economic data is anticipated to reinforce signs of weak economic activity in Europe.

Key events: UK - S&P Global/CIPS UK Manufacturing PMI USA - S&P Global US Services PMI (Jul) On Friday, the Dow managed to secure a victory, achieving its 10th consecutive weekly gain and extending its longest winning streak since 2017. The positive performance was driven by gains in defensive sectors of the market, particularly utilities. Traders were cautious ahead of the upcoming quarterly results from major tech companies.

The past year has brought many worries to investors. All three major stock market indices - the Dow, S&P 500, and Nasdaq - fell hard. The bond market hasn't been left out either if you look at the Bloomberg AGG index. Overall, 2022 is a dismal episode for the major stock and bond indices. Lingering COVID problems, unrelenting inflation, and Fed rate hikes have done their dark work. In 2023, many of the problems are certainly not going anywhere.

Key events:

Key events: Japan - National Core CPI (YoY) (Aug)

The Federal Reserve’s interest trade decision is arguably one of the most observed and traded events across the market. USD is the leading currency on Forex, so it makes perfect sense that the impact of the rate decision goes beyond the American economy and ripples out on dozens of other currencies and assets. It’s also worth mentioning that for advanced traders, the Reserve’s decision is mighty profitable. But before you jump headfirst into trying yourself out on the market, let’s take a few minutes discussing how to trade Fed rates effectively.