Market Update – by- Michael Oyebamiji
July 7, 2016FOMC meeting statement from last night was a bit dovish but was able to calm the market to halt 2 days of massive sell off on the global stock market as well as energy markets (Oil). FOMC minutes highlighted global market risk and also trying to see what Impact Brexit will have on the global economy. the statement also put some concerns on the recent drop in the jobs data in the US economy despite a big recovery in the unemployment data. This basically means we might not see a rate hike in the next meeting except if economic data shows strong recovery.
shortly after the statement markets rally across the board with all leading the rallies from the lows of $46.14 to $48.35. US Index (DXY) lost some value after the statement while gold also dropped from the highs of $1373. The big question is, is the rally across the board sustainable?
some key data will be out later today, this data are quite important to keep an eye on as they are most likely to give a clear direction to the market. Data such as: UK industrial production, UK Manufacturing production, US ADP Non-farm Employment change, Initial jobless claims, Canadian Ivey PMI and Crude oil Inventories,
