European stocks opened lower on Thursday, after a weak trading session on Wall Street the day before, when the Federal Reserve announced a widely expected rate hike of 25 basis points, and hinted it might suspend monetary tightening soon. The pan-European Stoxx 600 index was down 0.4% by 0808 GMT, …
Read More »Market Drivers – US Session 22/03/2023
Following the Fed’s decision on monetary policy, Wall Street finished lower after a turbulent session. The US Federal Reserve lifted rates by 25 basis points as predicted. When the Federal Reserve strikes a balance between rising inflation and banking instability, the tightening cycle is about to come to an end. …
Read More »Less Hawkish Fed Pushes Silver, Gold , Copper Higher
Following the Fed’s less hawkish announcement of its 25 bp interest rate hike on Wednesday, the price of silver surges upward. The Federal Open Market Committee Announcement noted “some additional policy firming,” and the dot plot median indicated one more hike. As a result, the Fed’s decision was largely anticipated.Prior …
Read More »Powell: Too early to say if recent effects change odds of soft landing
FOMC Chairman Jerome Powell comments on the policy outlook after the Federal Reserve’s decision to raise the policy rate by 25 basis points to the range of 4.75-5% following the March policy meeting. Key Quotes “We have the tools to protect depositors when there is the threat to economy, and …
Read More »US Dollar Index sharply falls on FOMC decision
In its policy statement, the US Federal Reserve dropped the reference to “ongoing increases” and said that some additional policy firming may be appropriate.The US Dollar Index sharply fell in an initial reaction to FOMC decision and was last seen losing 0.59% on the day at 102.579. Fed Policy Statement …
Read More »Fed hikes interest rate by 25 basis points as expected
The US Fed announced on Wednesday that it raised the policy rate, federal funds rate, by 25 basis points to the range of 4.75-5% following the March policy meeting. This decision came in line with the market expectation. Summary of Economic Projections, known as the dot plot, will shape how …
Read More »EUR/USD heading to 1.0800 resistance, supported eyed at 1.0770
Prior to the Fed’s interest rate decision at 1400 ET/1800 GMT, the EUR/USD pair is seeing supply at the 1.08 barrier. Fed futures with implied inflation are pricing in a 25 basis point increase. The pair is trading at 1.0792 at the time of writing., up 0.25%. The market will …
Read More »How Much Tightening Could Fed’s Dot Plot Bring To Markets?
The Fed is expected to hike interest rates by 25 basis points. The dot plot, or Overview of Economic Projections, will influence how the markets respond. The FOMC must strike a balance between dealing with inflation pressures and financial issues. The likelihood of a 25 bps increase this week is …
Read More »Gold’s surge favours any FOMC dovish signals to keep going
Gold is trading at $1946.97 at the time of writing. If the Fed pauses their rate hiking campaign – then they will lose any credibility they had left. However, if the Fed cuts rates – that will look like a panic move, which could spark a bigger crisis.Gold price reaction …
Read More »SNB Preview: Acting with caution
On Thursday, March 23, at 08:30 GMT, the Swiss National Bank (SNB) is scheduled to declare its Monetary Policy Decision. As the release time draws near, below are the predictions made by the economists and researchers of 5 major banks on the impending central bank’s Interest Rate Decision. Notwithstanding the …
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