Risk-off trading conditions, triggered by soaring US yields amid hawkish Fed language, led US equities to retreat on Thursday and the safe-haven US dollar has the chance to outperform, against its more risk-sensitive G10 peers mainly the other non-US dollars. The Dollar Index reversed an earlier dip below the 100.00 …
Read More »Gold Sets To Recover On Powell’s Comments, Hopes
The odds of a 50 bps interest rate hike have elevated after Fed Powell’s comments at the IMF meeting. Higher inflation pressures in a very tight labor market are compelling for squeezing the liquidity. A double bottom formation has raised expectations of a reversal in the gold prices.Gold price has …
Read More »US Dollar Benefits From Hawkish Fed Language, Euro In Demand
Risk-off trading conditions, triggered in part by a rise in US yields amid hawkish Fed rhetoric, saw US equities dip on Thursday and the safe-haven US dollar outperform, especially against its more risk-sensitive G10 peers like the Australian, New Zealand and Canadian dollars. The US Dollar Index (DXY) reversed an …
Read More »Powell Reiterates Fed’s plan to get interest rates “expeditiously” to neutral
Fed Chairman Jerome Powell on Thursday said the central bank is committed to raising rates “expeditiously” to bring down inflation. When asked about the topic of inflation at an IMF panel, Powell noted that the Fed is no longer counting on inflation coming back down, as these expectations of supply-side …
Read More »Market Drivers – US Session – 20 April
Fed Chair Jerome Powell’s remarks on Thursday will be closely monitored and are being flagged as having the potential to reignite the buck’s recent bull run. ECB President Christine Lagarde and BoE Governor Andrew Bailey will both also be speaking, so central bank policy divergence will be an important FX …
Read More »Fed’s Beige Book: Hot inflation, supply difficulties weigh on US firms
Supply chain bottlenecks, the highest inflation in decades and a persisting labour shortage are weighing on businesses across the country, according to a new Federal Reserve report. In its region-by-region roundup of anecdotal information known as the Beige Book, the Fed reported that while economic activity increased at a “moderate …
Read More »Gold firming at daily support
The Gold Price fall was capped by falling US Treasury yields amidst a risk-on market mood. US Treasury yields dropped from three-year highs and undermined the US dollar. Bulls start to engage at the start of a demand area, eyes on daily M-formation.Gold Price is higher in the US session, …
Read More »Daly: Case for a 50 bps rate hike in May is now “complete”
San Francisco Fed President and FOMC member Mary Daly on Wednesday said that the case for a 50 bps rate hike in May is now “complete” and that the Fed can also make an announcement on the reduction of its balance sheet at the next meeting, reported Reuters. Daly said …
Read More »Gold at its lowest level in two weeks, affected by US bond yields and the dollar
On Wednesday, gold prices fell to their lowest in nearly two weeks, weighed down by persistently higher US bond yields and the dollar. By 0741 GMT, spot gold fell 0.4 percent to $ 1941.40 an ounce, and US gold futures fell 0.7 percent to $ 1944.80. On Tuesday, the price …
Read More »Market Drivers – US Session – 19 April
Money flowed out of bonds again, sending the 10-year Treasury yield higher by 4 basis points to 2.9%. The bond market continues to price in aggressive rates by the Federal Reserve this year.Economic DataHousing Starts rose by 0.3% in March, taking the rolling 12-month number of starts to 1.793M, above …
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