Overnight Market Review (2022.7.18) Last Friday, the market’s expectation that the Federal Reserve will aggressively raise interest rates in July had “fever”, and US stocks rebounded, but they still fell for the whole week. At the same time, the recent strength of the US dollar index has also declined.
In addition, St. Louis Fed President Bullard, a big Fed hawk who has voted at the FOMC meeting this year, said that raising interest rates by 75 basis points or 100 basis points may not make much difference now. Meanwhile, a more dovish Fed official indicated he was not in favor of a 100 basis point rate hike in July.
But he does not have the right to vote this year. The market believes that officials, whether they are hawkish or dovish, whether it is another market expectation management by the Fed, at least indicate that July may only raise interest rates by 75 basis points.
Trading strategy deployment: it is recommended to go short at high levels
All transactions involve risks, the above analysis is for reference only. When placing an order, be sure to set the lot size and remember to set the stop loss.