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The Greenback navigated quite a bearish session on Thursday, giving away a big chunk of Wednesday’s gains despite higher yields and amidst a persistently firm sentiment in the risk-associated universe. The value of the US Dollar decreased significantly, which was good for riskier investments. The main focus will be on the PCE data (a measure of inflation), followed by other economic reports like consumer sentiment and spending.
The Euro recovered slightly after a big drop on Wednesday. The German labor market report and other economic indicators will be important. Also, two European Central Bank officials will be giving speeches.
The British Pound reached its highest point for the year as investors felt more confident about risky investments. The next important economic data for the UK will be GDP figures and mortgage approvals.
The US Dollar became weaker, which was good for riskier investments. The main economic focus will be on inflation data and other reports about consumer confidence and spending.
The Euro recovered slightly after a big drop on Wednesday. The German labor market report and other economic indicators will be important. Also, two European Central Bank officials will be giving speeches.
The British Pound reached its highest point for the year as investors felt more confident about risky investments. The next important economic data for the UK will be GDP figures and mortgage approvals.
The Japanese Yen weakened against the US Dollar, but then recovered some of its losses. Important Japanese economic data includes inflation figures, foreign bond investment, and economic indexes.
The Australian Dollar strengthened due to news of stimulus in China and the weaker US Dollar. The next important economic data for Australia will be housing credit and private sector credit.
Commodity Space
Oil prices fell to a two-week low because of plans by OPEC+ to increase oil production. Gold prices reached a new all-time high, even though interest rates were higher. Silver prices also reached their highest point since 2012. A Federal Reserve official supported the recent interest rate cut to address risks to employment.
Gold hit a new all-time high of $2,685 on Thursday as the Greenback began to recover from earlier losses sustained in the Asian and European sessions. US data portrays a ‘soft landing’ scenario, while China’s stimulus and rising tensions in the Middle East boosted Bullion prices. At the time of writing, the XAU/USD trades at $2,670.
Investor sentiment remains positive, as shown by the performance of US stocks. Interest rates for US Treasury bonds are higher. The US Dollar has remained relatively stable.
News from China supports the increase in gold prices. China’s government is taking steps to stabilize the real estate market and is providing more economic stimulus. The central bank has also lowered interest rates.
The recent rate cuts by the Federal Reserve and other central banks have pushed gold prices to new record highs. Even though the US Dollar is strong, investors expect the Fed to continue lowering interest rates.
The US economy grew strongly in the second quarter, and the number of people filing for unemployment benefits has decreased.
US Stocks
The Dow Jones Industrial Average increased on Thursday after US economic data eased concerns about a potential economic slowdown. The data showed that orders for durable goods were better than expected, suggesting that the Fed’s rate cut may not have been necessary. Orders for durable goods remained unchanged in August, but were still better than expected. The number of people filing for unemployment benefits also decreased. The economic data supports the Fed’s view that the economy is slowing down gradually. However, the upcoming inflation data will be important for determining the effectiveness of the recent rate cut.
Orders for durable goods remained unchanged in August, but were still better than expected. The number of people filing for unemployment benefits also decreased. The economic data supports the Fed’s view that the economy is slowing down gradually. However, the upcoming inflation data will be important for determining the effectiveness of the recent rate cut.
The Dow Jones Industrial Average is trading higher, with many stocks showing gains. Caterpillar’s stock price has increased due to news of a stimulus package in China. The jumbo rate cut by the Federal Reserve has caused some concern among investors. However, the Fed Chair has stated that the rate cut was not a reaction to a potential recession.
Also Read:
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Potential Impact of Chinese Stimulus on Investor Portfolios
Strong US Economic Data Fuels Market Rally
