CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

The Fed Minutes are Out but Does It Matter

August 21, 2019 6:41 PM

The Fed Minutes are Out, but Does It Matter?

The FOMC July 31st Minutes were released earlier today  and the collective market seems to think the minutes are less dovish than expected!

Let’s take a look at gold, both before and after the release:

BEFORE:


Source:  Tradingview, FOREX.com

AFTER:


Source: Tradingview, FOREX.com

Gold was volatile right before the release, however the immediate decline in gold after the release from 1507.25 to 1500.00 would suggest that the market thought the minutes were less dovish.  There is no need to own gold, as funds can be utilized elsewhere.

Let’s do the same for 30-year yields, again both before and after the minutes release:

BEFORE:


Source: Tradingview, FOREX.com

AFTER:


Source: Tradingview, FOREX.COM

Bond yields were coming off into the release and put in a low near 2.02, as the RSI was in short-term oversold conditions.  The immediate bounce to 2.07 in yields after the release also would suggest that the market thought the minutes were less dovish.  Bonds were sold, and yields moved higher. 

But when you get right down to it, does it matter what was in the minutes?  The meeting was three weeks ago!  All eyes will be on Fed Chair Powell on Friday as he speaks at the Jackson Hole Symposium and gives his CURRENT view of the economy!


StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024