Markets were volatile this week due to speculation on when the Fed starts to raise its interest rate and due to concerns over the Greek debt crisis. It seems as debt talks between Greece and its creditors will never end. Athens says that there is a progress in debt talks, EU officials denied it.
European Central Bank (ECB) Vice President Vitor Constancio pointed out on Thursday that a default of the Greek government and the solvency of Greek banks are not connected automatically. He noted that Greece will not leave the Eurozone if it does not repay its loans.
International Monetary Fund Director Christine Lagarde said in an interview to a German newspaper that a Greek exit from the Eurozone is possible.
It seems that investors are only focussed on when the Fed starts to raise its interest rate. Even if the Fed starts to hike its interest rate, it could mean nothing. I remember the year 2011. The European Central Bank (ECB) raised its interest rate twice, and lowered it only a few months later. U.S. exporters face difficulties due to the strong U.S. dollar. Just think what could happen if the Fed starts to tighten its monetary policy and other major central banks keep their lower interest rates for a longer period? They could face more problems. Their problems will weigh on the U.S. economy.
U.S. oil producers suffer from lower oil prices. Oil producers cut their spending on investment. Oil sector contributed a lot to the U.S. economic growth. Oil prices on low levels could also weigh on the U.S. economy despite a possible increase in consumer spending.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2021 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.