Overnight Market Review (2022.7.19) The Federal Reserve entered a period of silence this week, and the market focused on the intensively released earnings data. Overnight, the three major U.S. stock indexes turned lower as tech stocks slowed hiring.
In addition, the market’s expectations for the Fed to raise interest rates by 100 basis points next week have declined, the dollar has been under pressure, and commodities including crude oil and gold have been boosted accordingly.
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.
Due to the weakening of the dollar and the convergence of the Fed’s hawkish style. The strong dollar, which has been the driver of oil price volatility of late, pulled back from its highs on Monday, supporting commodity prices.
Trading strategy deployment: it is recommended to go short at high levels
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