Commercial message: Yesterday there was a live broadcast on the XTB YouTube channel in cooperation with one of the most successful traders in the Czech Republic and Slovakia, Ondřej Hartman. The main topic of the broadcast was Support and Resistance zones. This broadcast was followed by live commentary with XTB analysts and guest Jan Berka - here we focused on the FOMC's decision on interest rates.
What exactly was heard in the broadcast with O. Hartman?
Trading is not an easy matter as it requires a lot of effort, patience and education. This is precisely why Ondřej decided to cooperate with XTB create a series of live broadcasts, in which they will try to help beginners and advanced traders navigate the market and teach them how to use their most popular tools. As Ondřej himself says in the opening episode of this series, he would like to help someone improve their life, as these are his TOP 5 tools, which he himself has been using for many years, and very successfully.
The main topic of the evening was the already mentioned Support and Resistance (abbreviated S/R zones). In the broadcast, Ondřej explains what S/R zones are, how to use them in practice and identify the right ones. After explaining the basics, he dives into strategies for trading these zones and follows up with practical examples of trades.
At the very end, Ondřej answers the questions of the viewers, who had the opportunity to ask questions using comments directly during the live broadcast. Vladimír Holovka, business director of XTB, who moderated the entire broadcast, also brought interesting questions.
What did the FOMC meeting bring?
Traditionally, the most awaited event for investors from all over the world is the FOMC meeting. This took place just yesterday and XTB's full live coverage of this momentous event you can watch it on the YouTube channel XTB Czech Republic and Slovakia. The meeting brought new interesting news for investors – together with the decision on rates, other important information was also published, such as economic forecasts and the so-called dot chart, which shows where the members of the banking board see interest rates in the coming years.
While rates were expected to be left at previous levels in the range of 5,25-5,5%, macroeconomic forecasts were hawkish, which caused an immediate drop in the markets - the S&P 500 ended the session 0,94 pp lower in response to the session. The GDP forecast for 2023 was raised to 2,1% from the July forecast of 1%, while growth in 2024 is expected to be 1,5%, up from the previous forecast of 1,1%. Inflation measured by the PCE index was revised up slightly by 0,1 percentage point for this year and by 2025 percentage point for 0,1 to 3,3%, or 2,3%. Core inflation was revised slightly to more positive values, but the biggest surprise was the rate projections along with the dot chart.
The press conference continued after the meeting, where Governor Jerome Powell continued to suggest that inflation is still well above the 2% target and remains well anchored. He further added that GDP growth has exceeded expectations and remains very strong along with consumer spending. The labor market also remains tight and the unemployment rate remains low. He further added that they are willing to raise interest rates if necessary, and most monetary policymakers are more inclined to raise rates further this year.
