Daily news report: With the acceleration of developments and the release of data,
it is important to stay informed about all new movements and news in the market.
In this summary, Evest provides you with insights into the latest developments in the markets,
including US interest rates, cryptocurrencies and other assets.
Topics
Gold prices rise
The date of the next cut in US interest rates
Bitcoin settles above 45 thousand
Gold prices rise ahead of the release of crucial US data:
The markets are filled with anticipation as gold prices rise during Thursday’s trading session.
This rise comes in light of the decline in the US dollar index and the decline in US Treasury bond yields.
These accumulated factors push investors towards investing in gold as a safe haven.
US Inflation Report
The US inflation report due later today is expected to be the main driver of movements in gold prices.
This report is expected to provide more clarity on the US Federal Reserve’s monetary policy
expectations during this year. Based on these expectations,
investors are eagerly waiting to see the potential impact on the prices of gold and other assets.
In addition, the dollar index continues to decline for the second session in a row,
which enhances the attractiveness of gold.
Investors who hold other currencies find it more attractive and safer to invest in gold priced in US dollars in light of this ongoing decline.
Economic data answers the date of the next cut in US interest rates
Today, the markets will have important data that will answer the date of the next cut in US interest rates,
which reached their highest levels in 2023 at 5.5%, which is the highest ever.
Through high interest rates, the US Federal Reserve is fighting inflation levels,
which are now stable at 3.1% on an annual basis
The scenario preferred by the American bank
If inflation declines from its current levels of 3.1%,
which will appear during today’s transactions on the economic calendar,
and if this is actually achieved, it will be a confirmation of the US Federal Reserve’s superiority over high inflation,
and we may then witness an increase in the possibility of a rate cut during next March.
A nightmare that may shock the US Federal Reserve, led by Jerome Powell
That is if today’s data comes with consumer prices on an annual basis
that is higher than the expectations that indicate 3.2% at that time,
it will be an indication that American inflation is once again rising,
which may delay the reduction of interest rates during next March.
“Also, the scenario of the return of the spectre of inflation is on the rise.”
During 2024, the US Federal Reserve may be forced to maintain high interest rates without reducing,
which is the worst that may happen to the US Federal Reserve this year.
Cryptocurrencies are awaiting the release of important news today, and Bitcoin stabilizes above 45 thousand
The US Financial Regulatory and Exchange Commission
is likely to approve during US trading today a request to establish investment funds for cryptocurrencies.
It is the most prominent news of the year, which is priced positively,
which contributed to rises in the price of Bitcoins,
bringing prices to their highest price during the current year, approximately 47,910.
The approval of investment funds operating in cryptocurrencies by the United States will attract more funds and participants which will strengthen the position of cryptocurrencies in the future.
US inventories are showing positivity and oil is consolidating due to geopolitical
risks
After the arrival of US oil inventory data, which was issued during Wednesday’s trading,
which provided negative data of approximately -4 million barrels,
the latest reading showed a return to positivity in inventories
by providing a reading of 1.5 million barrels added to US inventories,
Despite the positivity of stocks, oil is still holding above $70 per barrel.
This comes in light of the tensions prevailing in the Red Sea navigation course,
the high cost of shipping, and the long sailing times for commercial ships.
As a result, Goldman explained that ships passing through the Red Sea
declined by 900 million barrels daily as a result of the current geopolitical events.
Daily news report