The Fed is completely changing its monetary policy

By 28/08/2020News
Morning Stock News

Gold  1942,02
(+0,67%)

EURUSD   1,1874
(+0,46%)

DJIA  28606
(+0,52%)

OIL.WTI  42,96
(-0,09%)

DAX   13067,01
(+0,01%)

Thursday was a great day for everyone who works in the stock markets. As expected, the head of the U.S. Federal Reserve in his speech outlined the current monetary policy changes. Interest rates may not rise at all for several years, and the Fed’s goal will be to ensure maximum employment.


GBP/USD

GBPUSD

The U.S. Federal Reserve no longer fixes on interest rates and releases inflation into free floating. Powell has assumed that there will be some average inflation, on which the reserve system will rely, and the main task now is to maximize employment.
In the near future we will have a very generous injection of money from the U.S. Federal Reserve, as well as new methods to stimulate the economy. The indices are likely to continue to grow, and the global economy is likely to feel better with such positive statements. After all, a lot depends on the United States.


Pound Sterling

The GBP/USD pair is doing very well. On Thursday, there was a break-down of the resistance at 1.3250, and we can already see that this will not be the last movement. After the Powell’s speech and the weakening of the US dollar, the GBP has good growth prospects. Soon we can see the break-through of the main resistance at 1.3250 and the exit to 1.34.


Bitcoin

The cryptomarket is almost flat for the whole week already. The coronovirus has contributed to the market growth, but there are still many difficult moments ahead. Fundamentally, the number of wallets where bitcoins are stored is growing, which should have a positive impact on price growth. The second factor for growth is decentralized financial applications. In recent months, such projects have already blocked about USD 7 billion in cryptocurrency, and forecasts say that this amount will increase to 20 billion by the end of the year… All these data indicate that the growth of the cryptocurrency is still ahead of us.


What’s waiting for us today?

11.00 European Union Consumer Confidence Index for August.
14.30 Annual data on Canadian GDP.
15.05 Speech by E. Bailey, Governor of the Bank of England


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