Weekly review: Policy differences between the European and American central banks ignite the foreign exchange market. The hawkish stance of the Federal Reserve clashes with the market's expectations of interest rate cuts
The core focus of the foreign exchange market this week is the policy differences between the European and American central banks. On the US side, despite the double pressure of slowing employment growth and falling consumer confidence, Federal Reserve officials maintained a hawkish stance, stressing that high interest rates will continue for a longer period of time. This position is in stark contrast to the market's expectations that the Federal Reserve will cut interest rates before the end of the year, causing market fluctuations.
Gold price rebound war: Record one-week increase. What signals should gold investors keep an eye on next week?
This week, the gold market ushered in its best weekly performance since mid-April. On Friday (March 9), the price of gold climbed to 2360.54 US dollars/ounce, an increase of 0.62%, while the price of gold futures for June delivery on the New York Mercantile Exchange rose 1.5% to close at 2,375 US dollars/ounce. The cumulative increase of 2.9% this week was mainly due to weak US employment data, which strengthened the market's expectations that the Federal Reserve would cut interest rates.
No interest rate cuts this year? Federal Reserve officials continue to “hawk”
Currently, the market generally expects that the first drop of the Federal Reserve will occur in September, and that interest rates will only be cut once during the year.
Fed's Barkin: Inflation Will Hit 2% With Appropriate Time and Policy
The current economy calls for a deliberate and patient approach.
Fed's Kashkari: I Am Cautious About Monetary Policy, Can't Rule Out Another Hike
I am in wait-and-see mode about the future of monetary policy.
Fed's Goolsbee: Housing Remains a Significant Inflation Challenge
Further comments from Chicago Federal Reserve (Fed) President Austan Goolsbee highlighted the Fed's ongoing battle with stubborn inflation that refuses to cool off to the US central bank's 2% target.
Fed's Goolsbee: We Hit an Inflation Bump This Year, Now We Wait
Chicago Federal Reserve (Fed) President Austan D. Goolsbee added his voice to the procession of Fed officials commenting on interest rates and inflation on Friday. Chicago Fed President Goolsbee spoke at the Economic Club of Minnesota.
The dollar rose before the US CPI data was released, technical analysis of EUR/USD, USD/JPY, and GBP/USD
This article will analyze the technical prospects of the three US dollar currency pairs EUR/USD, USD/JPY, and GBP/USD.
US Dollar Trades Mildly Positive as Markets Stay Cautious Ahead of Upcoming CPI Data
The US Dollar Index (DXY) is currently trading around the 105.35 mark, posting mild gains on Friday near the end of the trading week. The Greenback holds its ground but seems stuck as markets await drivers to continue placing their bets on the next Federal Reserve (Fed) decisions
Fed's Bowman: I Don't See Rate Cuts as Warranted This Year
If we saw unexpected shocks, that would be a case for a rate cut.
Federal Reserve Governor Bowman Hawk: I don't think there's any reason to cut interest rates this year
On Friday, Federal Reserve Governor Bowman, who has the right to vote in the Federal Reserve's FOMC, said that she believes it is inappropriate for the Federal Reserve to cut interest rates in 2024, and pointed out that the pressure on US inflation continued in the first few months of this year. Regarding the economic forecast report (SEP) submitted by Federal Reserve officials every quarter, Bauman revealed in an interview: As far as I am currently concerned, the 2024 interest rate cut has not been included in my economic forecast. I still expect to maintain current interest rates for a longer period of time, which is still my basic position. Bauman says she needs a longer one after several months of disappointing inflation data
Forecasting the Coming Week: US Inflation in the Spotlight... and More Fedspeak!
The US Dollar managed to reverse two weeks of losses and reclaim the area beyond the 105.00 barrier amidst some consolidative mood in US yields.
Silver and Gold Recovered Quickly – What's Next?
Gold and silver have been enjoying a return to demand since early May, and buyers have stepped up in the last couple of days, bringing gold back above $2370 and silver back above $28.5.
Fed's Logan: Too Early to Think About Cutting Rates
On Friday, Dallas Federal Reserve President Lorie Logan remarked that there are "uncertainties" regarding whether monetary policy is adequately restrictive to lower inflation to the Fed's target, emphasizing that it is "premature" to consider interest rate cuts at this stage.
U.S. Consumers Are Increasingly Worried as Inflation, Rates Bite -- University of Michigan
U.S. consumer sentiment is plunging against a backdrop of stubbornly high inflation and slowing economic momentum, a survey showed Friday.
US UoM Consumer Confidence Index Fell Further in May to 67.4
Consumer confidence in the US fell in May, with the University of Michigan's preliminary Consumer Sentiment Index plummeting to 67.4 in May from 77.2 in April. The reading also missed the market expectation of 76.
Consumer confidence in Michigan in the US unexpectedly plummeted in May, and short-term inflation expectations soared
Consumer confidence at the University of Michigan in the US in May unexpectedly fell far short of expectations. It fell sharply from April, and fell sharply from April. The monthly decline was the biggest since August 2021. Consumer expectations for short-term inflation have risen sharply, and so have long-term inflation expectations. Confidence has plummeted as people worry about inflation and the job market.
I am convinced that the Federal Reserve will cut interest rates this year, and this investment company is betting heavily on the residential mortgage market
The Zhitong Finance App learned that an investment company that deals in assets, mortgage-backed securities, and corporate debt is betting heavily on the residential mortgage market, where prices have dropped sharply, because the company expects the Federal Reserve to start cutting interest rates later this year. Scott Burg, chief investment officer of Deer Park Road Management Co. said in an interview that the Steamboat Springs, Colorado-based money management company has raised $170 million for its first mortgage opportunity fund. According to information, the company was in 2008
Fed's Bostic: The Timing for a Rate Cut Remains Uncertain
According to an interview with Reuters, Atlanta Federal Reserve President Raphael Bostic suggested that the Fed is probably still planning to reduce interest rates this year, despite uncertainty regarding when and by how much policy easing will occur, as well as the gradual pace of inflation declines.
Gold Rallies on Haven Appeal and Expectations of Lower Interest Rates
Gold price (XAU/USD) trades almost a percentage point higher in the $2,360s on Friday.