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Markets Uneasy as they Anticipate the Fed’s Policy Meeting, Travel Stocks Rise on News of U.S. Travel Update & CoinBase Halts Product Release

Indices lower, GBPUSD drops as market await Fed meeting

Stock indices were trading lower to start the week, as markets anticipated this week’s Federal Reserve policy meeting.

Many expect that the Fed will potentially change course, by adjusting its asset purchasing program, which was put in place during the peak of the pandemic.

Why does the Federal Reserve’s Policy meeting afect the markets?
The Federal Reserve Plays an important role in the health of the economy, that’s why Investors are forward-looking. They pay attention to the Fed to gauge expectations on what potential monetary policy actions it’ll take and how that will drive financial markets.

When the Fed’s Policies are uncertain the markets become more volatile

This month’s Fed meeting comes just as it is expected that payrolls will surge, as legislation for COVID-19 unemployment benefits expired.

GBPUSD dropped to an intraday low of 1.3640, which is its lowest in 4-weeks, with the benchmark S&P 500 index down by 2.47% as of writing.

Gold prices rallied on the uncertainty, climbing by close to $20 in today’s session.

Travel stocks rise, on the UK/U.S. Travel update

On Monday, it was also announced that the United States would be allowing fully vaccinated travelers from Europe and the UK to enter its shores once again.

The new rules, which will take effect from November, will require visitors to provide proof of vaccination, along with a negative test taken within 72 hours of departure.

Monday’s news was a welcomed boost to travel companies on both sides of the Atlantic, who have significantly lowered flight operations since last year’s travel ban.

More about airline travel during the pandemic
Since January 1st the FAA has imposed more than 1 Million Dollars in Fines to passengers who fail to comply with their Zero Tolerance campaign, which includes the mandatory use of masks on-board the aircrafts.

During the peak of the outbreak, former President Trump’ administration had issued the restrictors, which applied to more than 30 countries.

Shares in airline giant IAG, which owns British Airways amongst others, were up by as much as 10% as of writing.

CoinBase shares fall as company halts product release

Shares in CoinBase were down on Monday, as it was confirmed that the company would be halting plans to launch an interest-free product.

Last month, CoinBase CEO Brian Armstrong made headlines after he called out the SEC, stating “We’re committed to following the law. Sometimes the law is unclear. So, if the SEC wants to publish guidance, we are also happy to follow that”.

The SEC and CoinBase
Earlier in September  the Securities and Exchange Commission approached Coinbase regarding its CoinBase Lend service, which is said to be violating SEC regulations.

CoinBase Lend is an interest-earning product, which was scheduled to be launched during late September.

This was in response to reports that the SEC would be seeking legal action against the firm’s upcoming product release.

However, this release has now been cancelled, with a spokesperson for CoinBase stating that, “We had hundreds of thousands of customers from across the country sign up and we want to thank you all for your interest. We will not stop looking for ways to bring innovative, trusted programs and products to our customers”.

$COIN was down 4.24% as of writing.

Quote of the day -“I believe in analysis and not forecasting.”

– Nicolas Darvas

Eliman Dambell

Senior Market Analyst

 

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