Dubai TV Interview, Nov. 8, 2021

In an interview with Dubai TV, Director of Research and Development at Noor Capital, Mohamed Hashad takes a closer look at the markets.

USD

Hashad pointed out that last week was one of the most critical weeks ever in November, as there were major statements from the Central Banks, most of which refrained from raising interest rates and kept monetary policy unchanged.

One of the most critical factors that affected the dollar’s moves was the Federal Reserve’s decision to reduce the pace of asset purchases by about $15 billion; Hashad believes that this is one of the reasons that supported the dollar’s ​​position against the basket of currencies before it retreated.

In addition to the US jobs data; the economy added 455,000 jobs last month, better than expected, which indicates that the economy is on its way to recovery and maybe earlier than the fourth quarter of this year.

Gold

An important question over the past week was why gold prices rose despite the good employment numbers. Hashad explained that the reasons for this rise, in short, are the continuation of inflation fears or inflationary pressures that lead gold prices to rise as one of the safe-haven tools to hedge against inflation.

Jerome Powell has reiterated on rebalancing the markets and has completely shied away from hinting at a rate hike despite reducing asset purchases. He emphasized that asset purchases are separate from interest rates, and thus, Jerome boosted the dollar.

The high rate of infection with the Coronavirus in some countries, in addition to the decline in US bond yields, was one of the reasons that pushed gold higher.

Oil

“Hashad” indicated that oil’s movements today were primarily technical, after it succeeded in breaching 80.70 levels, to stop the bearish correction witnessed last Friday.

The good employment figures reflect the improvement of the labor market and the improvement of the US economy, the largest consumer of energy in the world.

There were also statements by the UAE Energy Minister in line with OPEC, which kept its production policy unchanged at 400,000 bpd.