Investors took the strong jobs showing as a reason for the Federal Reserve to move quickly as it starts to raise interest rates this year. Stocks on Wall Street rose on Friday, as an unexpectedly strong jobs report scrambled investors’ expectations for coming interest rate increases and as the latest …
Read More »Gold Price Stuck Around $1,800
The gold market hovers around $1,800 per ounce and might not go anywhere anytime soon as market sentiment among Wall Street traders and analysts remains neutral to bearish. Retail investors remain bullish on gold.Gold prices are caught smack in the middle of opposing forces as the global economy faces rising …
Read More »Bullard: Will Fed have to become more restrictive?
St Louis Fed President James Bullard on Tuesday said that he thinks it an open question whether the Fed will have to become more restrictive (i.e. raise rates above the “neutral” 2.0%-2.5% zone). Additional Quotes:“We will be able to assess our position in a few months’ time.”“I think it’s premature …
Read More »Gold Touches Fresh High As USD Flattened
At $1,799, the Gold Index (XAU/USD) is firm in the New York session, trading 0.37% higher on Monday. Equity markets started the week supported by greater clarity on the Federal Reserve’s policy normalization path and buoyed by central banks’ focus on securing a sustainable business cycle.Emergency monetary policy accommodation will …
Read More »Will BoE hike rates on Thursday?
The Bank of England will announce its decision on monetary policy this week. Market consensus points to a rate hike of 25bp to 0.50%. Analysts at Danske Bank see the BoE raising rates three times in 2022 (February, May and November) and consider that expectations of five hikes as being …
Read More »FOMC likely to hike rates by 125 bps over the course of 2022
Market observers believe the FOMC will announce the commencement of balance sheet reduction at the July 27 meeting. They look for the Federal Reserve to hike the Fed Funds rate by 125 bps in 2022.It is likely that the Committee will hike rates by 25 bps at the March 16, …
Read More »US Dollar Moves To Top Spot On CSI, Fed Powell’s Comments
The US dollar and yields have shot higher, extending the post-Fed statement gains during Fed Powell’s hawkish pivot. Bulls have got behind a faster pace of tightening than what had been priced in. The Federal Reserve did what was expected from them in the main and there had been low …
Read More »Powell: There is a risk high inflation will be prolonged
Fed Chair Jerome Powell, in his usual post-Fed meeting press conference on Wednesday, said there is a risk high inflation will be prolonged, even though it’s not our base case. Additional Remarks:“We have to be able to address all plausible outcomes.”“We need to be in a position to address the …
Read More »EUR/USD: Fed’s Statement Fails To Move The Needle Out Of Familiar Territories
The Federal Open Market Committee’s two-day meeting has concluded on Wednesday and the statement has been released along with the Fed’s interest rate decision in a highly anticipated event for financial markets.Markets were expecting the Fed to give guidance on asset purchases that were expected to conclude in March. However, …
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