Stocks rally again creating a roller coaster ride.

It’s been a roller coaster ride for stock indexes in the past week with the Dow Jones rallying strongly on Wednesday post the US Fed statement only to see much of those gains erased on Thursday. Come Friday and it was off to the races again with the buyers returning to send European and US Stock Indexes to fresh new highs. Our Euro Stoxx 50 position is now nicely out in front and I urge you to consider holding this position for the coming months.

The FTSE 100 has broken above 7000 for the first time ever and provided price can stay above 6976 for the balance of the week Friday’s daily close at 7017 will be a new daily high, weekly high and monthly high. The continued rally on the FTSE this week will likely depend on oil, gas and commodity stocks holding onto their gains as the FTSE 100 is loaded with plenty of energy, gas and commodity based stocks.


Greece has been negotiating its debt arrangements with the Euro Area and German Chancellor Merkel told markets on Friday that payments to Greece could begin shortly so long as its debt reform arrangements are approved. If Greece does get approval for its reforms and money flows to Greece, which is highly likely in my view I suspect this will send stocks in Europe and the UK even higher again. Don’t miss these potential big moves!

Each day Andrew Barnett and the LTG GoldRock Team share their views on what is happening in the Forex markets to assist their LTG GoldRock Trading Community to earn profits from the markets on a daily, weekly, monthly and yearly basis. The main goal of any new investor in this market and to Learn to Trade professionally.

US Fed statement drives the US Dollar lower and stocks higher.

They removed the word “patient” from their statement however it wasn’t the wording in the statement that drove traders to abandon the US Dollar and jump into US stocks on Wednesday. It was the Fed’s adjustment of its expectations for the US economy when it comes to inflation, growth and interest rates.

Traders on Wednesday assumed the US Fed would raise rates later in the year rather than sooner however Janet Yellen really didn’t give a firm indication either way. She simply said the Fed had removed the word “patient” from its statement but said the Fed could make a decision any month to raise interest rates. She’s certainly frustrating the market with her Dovish but yet slightly Hawkish comments.

Clearly the US Fed doesn't see the economy strong enough just yet but it is ensuring the market knows that if the data does rebound strongly, inflation lifts and job creation continues it could act at any time. One part of the statement that was also responsible for the US Dollar diving on Wednesday was the fact that US Fed lowered its forecast of where the official cash rate will be in December this year. It lowered its forecast by 0.50%.

You can read the full report in Today's LTG GoldRock Insider Report. for more information about our trading community and how you can learn to trade go to www.ltggoldrock.tv

LTG GoldRock RBA Monthly update

The minutes from the RBA monthly March meeting were released yesterday with the Central Bank of Australia not discounting another rate cut choosing to conclude their statement with the following comments. “In considering whether or not to reduce the cash rate further at this meeting, members saw benefit in allowing some time for the structure of interest rates and the economy to adjust to the earlier change. They also saw advantages in receiving more data to indicate whether or not the economy was on the previously forecast path. Further, they noted the greater degree of uncertainty about the behaviour of borrowers and savers in a world of very low interest rates.

Taking account of all these factors, members judged it appropriate to hold the cash rate steady for the time being, while recognising that further easing over the period ahead may be appropriate to foster sustainable growth in demand while maintaining inflation consistent with the target.”

LTG GoldRock last night held Part 2 of their special Free Forex Coaching Sessions. You can review the recording here.

The Week Ahead in the Forex Market

It is going to be a busy week for economic data and you only need to look at the High Impacting News announcements below to see currency markets are highly likely going to be volatile this week. There is that word “volatile” which many people think means risk but as you are now managing your risk to a static risk on every trade the fact there is lots of volatility coming simply means an increased profit opportunity and a set downside risk.  

 

For the full report check out Today's LTG GoldRock Insider Report.