Rate Hike Expectations Strengthen After Fed Decision: 4.5% in Early 2027 on the Agenda

Strengthening expectations of a Fed rate hike and a forecast of 4.5% interest rates in early 2027 could create valuation pressure on growth stocks. Despite GOOGL's slight 24-hour gain, RSI at 49 is neutral and below the MACD signal line, indicating weak momentum. The price is below the SMA20 (345.30) but above the SMA50 (339.33), making the 339-345 band critical in the short term. Rate hike expectations could create selling pressure on technology stocks, so the 1-3 day bias is downward. However, the news impact may be limited; unless the SMA50 support at 339.33 is broken, the decline is not confirmed.

DXY rose 0.69% in the last 24 hours to 100.28, with RSI at 69.7 approaching overbought territory. Strengthening expectations of a post-Fed rate hike and a forecast of 4.5% rates in early 2027 are positive catalysts for the dollar. MACD is slightly above its signal line and price is above SMA20 and SMA50, indicating short-term bullish momentum. However, RSI being near the overbought threshold suggests limited upside potential. In the 1-3 day view, I expect a moderate upward move, but the risk of profit-taking should not be ignored.

The strengthening of rate hike expectations after the Fed and the forecast of a 4.5% rate in early 2027 are negative factors for gold prices. GLD's RSI14 value of 39 indicates weak momentum and is below the MACD signal line. The fact that the price is well above the SMA20 and SMA50 averages (4286 vs ~395) is noteworthy; this suggests a possible inconsistency in the data source, but current indicators point to downward pressure in the short term. However, it should be noted that the decline may be limited as rate hike expectations are fully priced in and geopolitical risks support gold demand. Therefore, I expect a slight downward trend in the 1-3 day horizon, but additional confirmation is needed for a definitive decline.