Investor around the world is focusing on the first testifies of new Fed chair – Jerome Powell. He may signal the direction of Fed’s monetary during his term. If Powell signals that Fed will increase the interest rate in March, Greenback may become steady before FOMC meeting on 22nd March. If this year Fed raises interest rate aggressively, it may affect to economic of many countries, especially developing countries.
How rising interest rate will affect foreign countries? First, U.S. dollar will be steady in long term but it may swing in short term because of the speculation. Additionally, capital may go back to USA because of the higher return combined with the reducing tax. As the result, U.S. economic may grow but developing countries economic may slower. New York stock market may keep its bullish support by the good consumer confidence of February at 22.00 and suggest a resistance at 25600 points.
In my view, dollar may hold steady on Tuesday even core durable goods orders of January at 20.30 p.m. may drop lower. Gold price may move in the frame between 1320-1350 USD. Oil price may eye to 70 USD/barrel again. The11-year-old boy - Andrew Courey just wrote a book “Early bird gets the Bitcoin” that hope to help children to understand while bitcoin price edge lower than 10,000USD again. It may the signal of needed innovation for future.
By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.