empty
 
 

07.09.202110:44 Forex Analysis & Reviews: Stocks rose amid potential delay in Fed tapering

Exchange Rates 07.09.2021 analysis

Stocks continued to rally on Monday even though it was weekend in the US and markets were closed for Labor Day. Clearly, investors are convinced that the Fed will delay cuts in stimulus amid slower-than-expected recovery in the US labor market. This pushed the S&P 500 to close 0.25% higher yesterday.

Exchange Rates 07.09.2021 analysis

The latest employment data disrupted the projection of investors, when they were bracing for an early Fed tapering. They did not expect that jobs will only gain 235,000 in August, the smallest growth it recorded in seven months.

"Expectations of a delay in Fed tapering as well as new administration in Japan is supporting equity markets and we expect this to continue," Sebastien Galy, a strategist at Nordea Investment Funds, said. "The mentality of 'buy on dip' is as robust as ever taking negative news such as U.S. nonfarm payrolls as good news, which is typical of an advanced carry," he added.

Meanwhile, dollar showed a slight increase on Monday, thanks to the S&P 500 remaining the same and Treasury yields growing amid disappointing US wage growth.

Other important events for this week are:

- US President Joe Biden will decide whether he will reappoint Jerome Powell as Fed Chairman;

- policy decision of the Reserve Bank of Australia (Tuesday);

- trade data from China (Tuesday);

- Bitcoin law in El Salvador will go into effect (Tuesday);

- discussion by Dallas Fed President Robert Kaplan (Wednesday);

- ECB press conference (Thursday);

- report from China on PPI, new RMB loans, money supply and cumulative funding (Thursday).

*La presente analisi del mercato ha un carattere esclusivamente informativo e non rappresenta una guida per l`effettuazione di una transazione.

Andrey Shevchenko,
Esperto analitico di InstaForex
© 2007-2021
Approfittati subito dei consigli degli analisti
Deposita i fondi sul conto di trading
Apri un conto di trading

Le recensioni analitiche di InstaForex ti renderanno pienamente consapevole delle tendenze del mercato! Essendo un cliente InstaForex, ti viene fornito un gran numero di servizi gratuiti per il trading efficiente.

In questo momento non potete parlare al telefono?
Ponete la vostra domanda nella chat.