• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Technical analysis

Markets Focused on U.S. Presidential Meeting and FOMC

Yashu Gola by Yashu Gola
4 years ago
in Technical analysis
Reading Time: 4min read
Federal Open Market Committee Meeting
Advertisement

In early November 2016, the FOMC will be meeting and the U.S. weekly unemployment numbers are coming in just a few days before the U.S. Presidential election. The markets should see a rise in volatility heading into these events, so you should focus on the FX, U.S. equity and fixed income markets in November.

Although the market is pricing in a 92.8% probability that Federal Open Market Committee (FOMC) voting members will leave rates unchanged, there could be some clues on the timing of the next interest rate hike. Some FOMC officials are expecting one interest rate hike before the year ends, so the focus should be on the December 2016 meeting. It’s highly unlikely that the Fed will shake up the markets right before the U.S. Presidential election.

U.S. Presidential Election Will Shake up the Markets

Donald Trump, Hilary Clinton, US Election

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

We’ve already seen how comments and news regarding the U.S. Presidential election affects the markets…so there should be increased volatility right after the U.S. Presidential election.

With less than two weeks until the election, the FBI announced that it was looking into Clinton’s emails, sending some ETFs and currencies into panic mode. The news caused the markets to price in a higher probability of Donald Trump becoming the next U.S. President, which is a game changer.

U.S. Democratic Presidential candidate Hillary Clinton has been leading the race, but she recently came under fire for her emails. The FBI found a slew of emails from one of Clinton’s top aides, which caused the USD/MXN to spike and the U.S. equity market fall.

Now, if this email scandal doesn’t go away, the markets will definitely price this in, and therefore, there will be increased volatility.

Trump Presidency is Trouble for Mexico-Related Securities

Exchange-traded funds (ETFs) tracking Mexico have moved inversely to the increasing probability of Trump becoming U.S. President. As Clinton has been leading Donald Trump, the Mexican peso strengthened against the U.S. dollar and ETFs tracking Mexico also rose.

However, Clinton’s email scandal caused the iShares MSCI Mexico Capped Fund (NYSEARCA: ETF) to fall from $51.03 per share at the close on October 27, 2016 to a low of $49.69 on October 28, 2016. Additionally, we saw the currency pair, USD/MXN, spike above 19.00 on October 28, 2016.

If Trump is elected, look for potential short opportunities in Mexico-related ETFs and the Mexican peso.

FOMC 2016 Meetings

There are only two meetings left for the Fed in 2016. The November meeting should be a nonevent because the Fed doesn’t want to impact the markets less than a week before the U.S. Presidential election. The Fed is most likely leaving rates unchanged in November, but that doesn’t mean FOMC officials can’t surprise the markets. You should still follow what the FOMC says after the meeting because there could be some comments indicating when the Fed could raise rates.

Right now, most market participants are looking for a December rate hike. According to the CME Group 30-Day Fed Fund futures prices, market participants are placing a 73% probability on a 25 basis point rate hike and a 4.7% probability on a 50 basis point rate hike in December.

screen-shot-2016-11-02-at-5-17-23-pm

If rates rise, you should focus on the FX markets, particularly the U.S. dollar. As rates rise, the U.S. dollar should rise due to decreased inflationary pressure.

Head of Trading at Stern Options stated, “The markets should see increased volatility heading into the two big events in November 2016. The FOMC bluffed a rate hike for most of 2016, but there’s a high probability of the Fed raising rates once before the end of 2016…We just don’t know when the Fed could raise rates.

I’m currently focused on the FX market and U.S. equity and will consider either long or short positions depending on the outcome of the FOMC meeting and the U.S. Presidential election.”

The Bottom Line

All eyes are on the FOMC and the U.S. Presidential election. There should be a spike in volatility right after the results of the events are released. Consequently, there are trading opportunities in multiple asset classes that you could exploit.

Cover Image via OUP

Tags: bitcoin companyBitcoin newsDonald TrumpFOMCHilary ClintonInterest RatesUS Elections
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Related Posts

bitcoin

Two Patterns, One Coin: Is Bitcoin Currently Bearish Or Bullish?

2 days ago
Ethereum

TA: Ethereum Corrects Rally, But 100 SMA Could Spark Fresh Increase

2 days ago
Bitcoin

TA: Bitcoin Consolidates, Here’s Why BTC Could Surge Above $64K

2 days ago
bitcoin cme coinbase

CME Flashback: How The COIN Listing Could Culminate Bitcoin Rally

3 days ago
Ethereum

TA: Ethereum Outperforms Bitcoin, Why Bulls Could Aim $2,500 or Higher

3 days ago
Bitcoin

TA: Bitcoin Trims Gains, But Here’s How BTC Could Rise Again

3 days ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
Bybit

Bybit

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Top ICOs

Student Coin

Student Coin

Review · Visit

Token sale

Holdefi

Holdefi

Review · Visit

Press Releases

XRP Triples Within Weeks, Will the Bull Run Continue?

April 17, 2021

User-Friendly Interface Is Key to Wisebitcoin’s Steady Growth

April 16, 2021

Sign up and Get Free $30 Coupon With Nhash Cloud Mining Services

April 15, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Invest BTC
  • Join STC ICO

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.