empty
27.01.2025 09:31 AM
Correction in U.S. Stock Indices and Dollar Strength May Be Short-Lived (Potential for a Local Decline in the NASDAQ CFD and Growth in USD/CAD Pair)

The upcoming week will be filled with important events and the release of significant economic data, which will undoubtedly have a noticeable impact on global market dynamics.

Let's begin by discussing the main political and geopolitical events of the past week. Since taking office, President Donald Trump has made numerous statements and taken actions that directly affect market conditions. A primary concern has been the issue of tariffs and duties on imports, which, coupled with geopolitical tensions, has created anxiety among investors. On Friday, while speaking online at the forum in Davos, the president emphasized the need to continue lowering interest rates. This statement led to an increase in demand for company shares. However, with the Federal Reserve meeting approaching and a wealth of important economic data as well as earnings reports from several major American companies on the horizon, investors are choosing to reduce the number of previously opened positions.

The ongoing discussions around tariff plans and immigration control are negatively impacting U.S. equities while simultaneously bolstering the dollar as a safe-haven currency. However, the market's response to the upcoming FOMC meeting and recent economic reports remains uncertain.

According to data from federal funds futures, there is a 99.5% probability that interest rates will stay unchanged within the 4.25%-4.50% range. The main focus will be on Fed Chair Jerome Powell's statement regarding the outlook for future rate cuts. Many investors believe that a rate cut is unlikely before summer. Therefore, if the FOMC statement and Powell's comments do not provide new insights, the market reaction to the meeting results is expected to be muted.

Economic reports will be crucial, particularly the Personal Consumption Expenditures (PCE) Price Index and its core reading, along with data on personal income and spending. An increase in these indicators would indicate ongoing inflationary pressures, making it less likely for the Fed to ease monetary policy before spring.

Investors will closely examine the Q4 GDP report, which is expected to indicate a slowdown in growth from 3.1% to 2.7%.

Overall, the upcoming FOMC meeting, potentially weaker GDP data, and rising PCE, combined with tariff concerns, may lead to further corrections in U.S. equities. During this time, the dollar is likely to find support.

Furthermore, anticipated rate cuts from the European Central Bank and the Bank of Canada could put pressure on the euro and the Canadian dollar against the U.S. dollar.

What could reverse the negative trends in U.S. equities, cryptocurrencies, and the strengthening of the dollar?

A series of optimistic announcements from Trump could serve as a catalyst. For example, implementing his plans to reduce the corporate tax burden would significantly boost demand in the stock market. Additionally, positive earnings reports from major companies expected this week could provide an upward momentum for equities.

Given Trump's ambitious plans to revive the U.S. economy, any correction in the stock market is likely to be short-lived. Local declines may prompt renewed buying, allowing major stock indices to resume an upward trajectory.

Daily Forecast

This image is no longer relevant

This image is no longer relevant

NASDAQ (#NDX)

The NASDAQ CFD is declining amid expectations of the FOMC meeting results and critical U.S. economic data released this week. Persistently negative market sentiment could push the CFD down to 21,000.00.

USD/CAD

The pair remains in a sideways range of 1.4300–1.4465. A potential rate cut by the Bank of Canada, coupled with the Fed maintaining its rates and overall market negativity, could drive the pair toward the upper boundary of this range at 1.4465.

Seleccione el marco de tiempo
5
min
15
min
30
min
1
hora
4
horas
1
día
1
s.
Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO

Recommended Stories

El negocio del gas en Europa está muy mal

Europa se tambalea al borde de otra crisis energética. Esto se hizo evidente después de que los precios del gas natural se dispararan a su nivel más alto

Miroslaw Bawulski 12:39 2025-02-11 UTC+2

Trump dijo, Trump hizo...(hay riesgo a la baja para #SPX y #Bitcoin)

El presidente estadounidense sigue golpeando a lo que considera países competidores e incluso industrias enteras en un intento de proteger por la fuerza el mercado interno y al productor

Pati Gani 09:10 2025-02-11 UTC+2

Los precios del mercado del gas se estabilizan

Durante los últimos días de negociación, los precios del mercado del gas se han estabilizado después de una importante liquidación a principios de semana. Evidentemente, el sector del gas también

Miroslaw Bawulski 13:54 2025-02-07 UTC+2

Análisis del par GBP/USD. El 7 de febrero. El Banco de Inglaterra provocó la caída prevista de la libra.

El par de divisas GBP/USD mostró un fuerte movimiento bajista el jueves. Todos los que saben un poco sobre el mercado de divisas y analizan cuidadosamente lo que está sucediendo

Paolo Greco 07:36 2025-02-07 UTC+2

Análisis del par EUR/USD. El 7 de febrero. Nóminas no agrícolas: ¿tendrá suerte el euro esta vez?

El par de divisas EUR/USD se negoció a la baja el jueves. La caída de la divisa europea no fue provocada por ningún evento específico, y la volatilidad durante

Paolo Greco 07:36 2025-02-07 UTC+2

Análisis del par GBP/USD. El 6 de febrero. La libra esterlina sube en vísperas de la flexibilización de la política monetaria.

El par de divisas GBP/USD también subió con firmeza el miércoles, aunque el informe matutino del Reino Unido fue mucho peor que los informes similares europeos, y el mercado tenía

Paolo Greco 07:24 2025-02-06 UTC+2

Análisis del par EUR/USD. El 6 de febrero. Continúa la corrección puramente técnica.

El par de divisas EUR/USD continuó su movimiento alcista el miércoles. Un día antes había motivos para un nuevo crecimiento del euro, pero, como suele decirse, no los más seguros

Paolo Greco 07:24 2025-02-06 UTC+2

El Bitcoin ha salvado al mercado de las criptomonedas

¡Bienvenido a la era de Donald Trump! El Bitcoin cayó un 6% ante la información de que la Casa Blanca impondría aranceles de importación contra México, Canadá y China

Marek Petkovich 11:34 2025-02-04 UTC+2

Noticias del mercado del gas

El mercado del gas se recuperó bastante bien ayer tras la noticia de que EE.UU. impondría aranceles comerciales a China, México y Canadá, pero luego, al debilitarse la demanda

Miroslaw Bawulski 09:16 2025-02-04 UTC+2

Análisis del par GBP/USD. El 4 de febrero. La libra esterlina cayó al igual que el euro.

El par de divisas GBP/USD perdió unos 100 pips el lunes justo en la apertura del día y de la semana. Y luego otros 40. Durante el día, la libra

Paolo Greco 07:24 2025-02-04 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.