{"id":103413,"date":"2017-03-14T07:08:16","date_gmt":"2017-03-14T11:08:16","guid":{"rendered":"http:\/\/countingpips.com\/?p=103413"},"modified":"2017-03-14T07:08:16","modified_gmt":"2017-03-14T11:08:16","slug":"are-you-ready-for-some-action","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/03\/are-you-ready-for-some-action\/","title":{"rendered":"Are you ready for some action?"},"content":{"rendered":"
March 14, 2017<\/div>
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Article by ForexTime<\/a><\/p>\n

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Do not let the quiet session on Monday and early Tuesday fool you, volatility may be just around the corner. The Federal Reserve is meeting tomorrow, the Dutch are heading to the polls, the UK triggering Article 50 is edging closer, a group of 20 finance ministers and central bankers are meeting on Friday, and a couple of tier one data releases is fast approaching. With such extraordinary event risks scheduled this week, traders should be prepared for big moves across all financial asset classes.<\/p>\n

Beginning with the Fed\u2019s monetary policy announcement, there seems to be a total agreement within analysts that the Fed will hike rates by 25 basis points, but the dollar is no longer reacting to the news and a 25-basis points increase isn\u2019t likely to move the dollar on either side. The question now has become \u201cwill the Fed prepare the markets for a faster tightening process in monetary policy?\u2019 This is what\u2019s likely to move the dollar going forward. Markets are currently pricing in a 60% chance of 3 rate hikes in 2017, and for this percentage to move higher we need to see the dots on the Fed\u2019s dot plot move higher with some hawkish statements from Chair Janet Yellen.<\/p>\n

Yields on U.S. 10-year treasury bonds are still holding near 2.5 years high at 2.61%, and it requires a clear break from this level to confirm another move higher for USD. Theoretically higher bond yields are negative for U.S. stocks, but given that negative correlation didn\u2019t yet occur within these two asset classes, we need a significant push, maybe towards 3% on U.S. 10-year yields to concern equity investors. Although U.S. stocks valuations look overstretched by many metrics, still there isn\u2019t enough evidence of a sharp correction, however, I\u2019ll be very careful to consider buying into the second-longest bull run ever.<\/p>\n

Brexit is by no doubt the hottest topic in Europe after the UK\u2019s parliament passed the Brexit bill and opened the way to triggering article 50. Prior to giving Theresa May the greenlight, there were rumors that Article 50 may be triggered as soon as today, but government representatives assured that Article 50 would not be triggered until the end of this month. Interestingly the pound was very resilient, in fact it traded on Monday higher against the US dollar and most major currencies, suggesting that the official divorce is entirely priced in, and even as Scottish First Minister Nicola Sturgeon announced plans for a second independence referendum, the pound continued to climb.\u00a0 Having said that, the beginning of the formal negotiations might indicate that there\u2019s still room for further drop, especially if the EU took a hard stance, so yesterday\u2019s reaction is not sufficient to indicate the pound has found the floor already.<\/p>\n

Staying in Europe, the Netherlands\u2019 elections tomorrow will also take center stage as it effectively acts as a barometer for populist attitudes across the EU. The government of Netherlands is based on proportional representation, so even if the Party of Freedom won the largest number of seats, this won\u2019t change the countries politics a lot. However, this will confirm that populism is on the rise, and boosts the chances of Marine Le-Pen winning the French elections. What does this mean for investors? \u201cFasten your seatbelts, it’s going to be a bumpy ride\u201d<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime Do not let the quiet session on Monday and early Tuesday fool you, volatility may be just around the corner. The Federal Reserve is meeting tomorrow, the Dutch are heading to the polls, the UK triggering Article 50 is edging closer, a group of 20 finance ministers and central bankers are meeting […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-103413","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/103413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=103413"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/103413\/revisions"}],"predecessor-version":[{"id":103424,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/103413\/revisions\/103424"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=103413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=103413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=103413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}