In recent weeks, gold prices have reached all-time highs. Due to its dual function as a store of wealth and a hedge against inflation, the price of gold has a special place in the financial markets.Although gold has broken several records since the COVID crisis began, the recent surge in …
Read More »BoC Macklem: Still too early to consider cutting interest rate
Governor of the Bank of Canada Tiff Macklem said that unless the central bank is certain that the economy is returning to price stability, it is still too soon to think about cutting interest rates. The USD/CAD pair was last seen at 1.3372 and was headed for its lowest weekly …
Read More »US stocks head toward seventh straight week with gains
US stocks are currently hovering around their record highs. They are poised to end the longest weekly winning streak in six years. With a 0.1% decrease in morning trade, the S&P 500 is now 1.7% behind its all-time high from early in the previous year. The Dow Jones Industrial Average, …
Read More »Could ECB’s Lagarde resists rate cut bets for longer?
In a stark contrast to her US Federal Reserve counterpart, Jerome Powell, the European Central Bank President Christine Lagarde has reiterated that borrowing costs will stay at record highs despite weaker inflation projections. In spite of the fact that price pressures are still high and inflation will shortly recover, ECB …
Read More »How have key assets reacted to FOMC’s dovish language?
Gold price, eventually, abandoned daily lows and climbed above the $2000 level. The precious metal benefited from sinking Treasury bond yields after FOMC’s statement had signaled dovishness with projected interest rate cuts in the new year. Fed Chair, Jerome Powell, stated that the Fed is committed to achieving its mandates …
Read More »SEP, Dot Plot suggest rate cuts in 2024
The US central bank announced on Wednesday that it left the policy rate, federal funds rate, unchanged at the range of 5.25%-5.5% following the December meeting. This decision came in line with the market expectation.The revised Summary of Projections (SEP) showed that that Fed officials’ median view of policy rate …
Read More »Jerome Powell sheds light on FOMC’s pause decision
Fed Chair Jerome Powell explained the decision to keep the policy rate, federal funds rate, unchanged at the range of 5.25-5.5% and responded to questions in the post-meeting press conference.Quotes from Post FOMC meeting press conference“It’s not likely we will hike further.”“Policymakers are thinking, talking about when it will be …
Read More »Fed signals 3 interest rate cuts in 2024
The Fed has held its key interest rate unchanged for the third consecutive time and set the stage for multiple cuts to come in 2024 and beyond. With inflation rates easing and the economy holding in, FOMC members voted unanimously to keep the benchmark overnight borrowing rate in a targeted …
Read More »How does US dollar react to FOMC’s looming rate decision?
The US Dollar Index is trading with losses below the 104.00 mark, with a -0.23% decline around the 103.850s mark. Investors are awaiting the Fed’s interest rate decision on Wednesday, which is expected to announce a continued pause on interest rate increases, leaving rates unchanged. So, markets anticipate the Fed …
Read More »Gold prices unchanged post-US CPI data
Gold prices have increased following the release of the US CPI data, triggering cautious optimism ahead of Wednesday’s Fed’s Monetary policy decision. Gold prices found some support on Tuesday after a two-day decline, favoured by softer US yields and a weaker US dollar. Geopolitical tensions continue to grow amid news …
Read More »