Daily Video Analysis: Investors Look at Interest Rates

Good Morning and welcome to CupO’Forex! This is your Daily Video Analysis for Wednesday, Sept. 10.

Global equity markets went on a bit a wild ride yesterday as markets in Europe and the United States bled a bit. Investors, in Europe are worried about tensions in the Ukraine, deflationary pressures, slowing economic data out of Germany, France and Italy and in the United Kingdom, and they are worried about the upcoming referendum for Scotland’s independence from the monarchy.  A “yes” vote here will not be good for the Sterling or equities in that region, and as we mentioned, will effect Asia and the rest of the global financial markets. Right now it has been impacting the FTSE and the Sterling as we are seeing both weakness in England’s equity market as well as the Sterling.

U.S. markets were also lower overnight as investors mulled interest rates. We saw a sell off in Treasuries as traders forward think to when the U.S. Federal Reserve will normalize economic policy and raise its benchmark interest rate. The end of the asset purchase program is also very near. This is rattling investors.

The bleeding continued into Asian equity markets as we are seeing Sydney and Hong Kong at multi-week lows. Sydney was not helped as consumer confidence numbers contracted sharply. Right now investors are waiting on consumer loan data coming out of China.

Thank you for listening and have a great day trading.