Tag Archives: USD

Jerome Powell’s Inflation updates

Jerome Powell’s Inflation updates, The Federal Reserve chairman said a December rate-hike slowdown is possible.

 

Topics
Slowing December Rate-Hikes
The Fed’s Gradual Rise in Rates
The Fed’s New Plan

 

 

 

 

Ahmed Osama Market Review at CNBC Arabia

 

 

 

 

 

Slowing December Rate-Hikes

 

Jerome Powell, the Chairman of the Federal Reserve, recently cautioned that inflation is still a problem in the United States.
He said that a slowdown in rate hikes does not mean the increases will stop entirely.
This would be good news for investors, as it would mean that interest rates would remain low.
This could help to spur economic growth and create more opportunities for investment.

Powell’s remarks come as inflation has been rising in recent months.
The Consumer Price Index (CPI) rose 2.3% in April from a year earlier,
while the Personal Consumption Expenditures (PCE) price index –
the Fed’s preferred measure of inflation – increased 1.6%.
The Fed has raised interest rates three times since December 2015 and is widely expected to do so again this month.
However, Powell said that future rate hikes could be slower if inflation remains tame.
With Powell signalling that rate hikes could be slowed down,
if necessary, it appears that the Fed is committed to keeping economic growth
on track without stifling it with too much monetary tightening.
“We will be paying close attention to incoming data
and other developments as we formulate our views on appropriate monetary policy,” Powell said.
“If developments emerge that cause us to question our outlook, we will respond accordingly.”

The Federal Reserve’s Jerome Powell said Wednesday that the central bank is “a long way” from reaching its goals on inflation and employment, indicating that interest rates will remain low for the foreseeable future.

 

 

 

 

The Fed’s Gradual Rise in Rates

 

In remarks emphasizing the work left to be done in controlling inflation,
Powell said that issue was “far less significant than the questions of how much further we will need to raise rates to control inflation,
and the length of time it will be necessary to hold policy at a restrictive level.”
Powell’s comments suggest that the Fed is in no hurry to raise rates even as unemployment falls and economic growth picks up.
That could mean good news for borrowers but bad news for savers who have been struggling with low-interest rates.

The Federal Reserve is committed to keeping interest rates high until inflation is under control.
This means that even though the economy may slow down next year,
the Fed will not be cutting rates. Instead, they will keep rates at a restrictive level in order to get inflation under control.
He said curing inflation “will require holding policy at a restrictive level for some time,”
and he added “We will stay the course until the job is done,” Powell said,
noting that even though some data points to inflation slowing next year,
“We have a long way to go in restoring price stability
Despite the tighter policy and slower growth over the past year,
we have not seen clear progress on slowing inflation.” This comment sent shockwaves through the markets,
as investors had been expecting the Fed to begin cutting rates next year.
But now it looks like we could see rates stay flat or even rise further, which would be bad news for the economy.

So, what does this all mean for investors? Well, it depends on how you’re positioned.
If you’re invested in stocks, then higher interest rates could hurt valuations and cause market volatility.

 

 

The Fed’s New Plan

 

Either way, it’s important to keep an eye on how this all plays out over the coming months.
The Fed’s comments today have definitely thrown a wrench into market expectations,
and it’ll be interesting to see how things unfold from here.

The central bank has been gradually raising rates since December 2015 to
normalize monetary policy after years of near-zero rates following the financial crisis.
Policymakers have pencilled in three rate hikes for this year and four more next year.
But with inflation remaining below the Fed’s 2% target,
some economists say the central bank could slow the pace of hikes next year.

The central bank has been gradually raising rates since December 2015
to normalize monetary policy after years of near-zero rates following the financial crisis.
“You can’t keep raising rates as quickly as they were doing it,”
said Rick Meckler at Cherry Lane Investments in New Vernon, New Jersey.
“That said, investors always like the comfort of hearing it directly from the (Fed) chair.”
Policymakers have pencilled in three rate hikes for this year and four more next year.
But with inflation remaining below the Fed’s 2% target,
some economists say the central bank could slow the pace of hikes next year.

 

 

 

 

Gold: The Road to Recovery

Gold: The Road to Recovery, Gold prices have staged a modest recovery in recent trade,
retaking the $1750 per ounce level amid broad-based selling pressure in the US Dollar.

 

Topics
The Gold Rush
Rising US Treasury Bond Effect
Gold price technical outlook

 

 

 

 

 

 

The Gold Rush

 

The move comes as market participants brace for what is shaping up to be a critical day of trading
on Tuesday, with renewed optimism from China helping to support risk flows.
With safe-haven demand easing and the USD under pressure,
gold prices appear poised to continue their upward march in the near term.
However, any further gains may be limited by resistance around the $1760 level.
|For now, all eyes remain on developments in China and how they will impact global markets tomorrow.
The US Dollar has come under pressure as optimism grows in China that the country will soon be able to relax its zero-Covid policy.

After three days of lockdown-induced protests, Chinese equity markets have rebounded strongly on the expectation that the government will soon ease its restrictions. Global Times tweets have suggested that the government could do away with its stringent zero-Covid policy sooner than later, lifting risk sentiment and putting pressure on the US Dollar.
The S&P500 futures are up 0.36% so far today, reflecting the positive shift in market sentiment. With China moving closer to reopening its economy, investors are becoming increasingly optimistic about global growth prospects, and this is weighing on the safe haven US Dollar.

It’s worth noting that China on Tuesday reported a decline in new COVID-19 infections for Nov. 28, posting 38,645 cases, after a record daily high of 40,347 cases on the previous day. Reduced safe-haven demand for the US Dollar bodes well for the USD-sensitive gold price.\

 

 

 

 

Rising US Treasury Bond Effect

 

The US Treasury bond yields recovered sharply on Monday after the hawkish commentary from the United States Federal Reserve officials. The further recovery in Gold price could be capped by the buoyant tone seen around the US Treasury bond yields.
James Bullard, President of the Federal Reserve Bank of St. Louis, said that rates need to go higher to bring inflation down. New York Fed Bank President John Williams said that “I do think we’re going to need to keep the restrictive policy in place for some time; I would expect that to continue through at least next year.” Meanwhile, Richmond Fed President Thomas Barkin noted that “I’m very supportive of the path that is slower, probably longer and potentially higher.”

The Bullish remarks from the US Treasury officials lifted the bond yields and fuelled a solid comeback in the US Dollar. Gold price, therefore, closed Monday deep in the red near the $1,740 demand area. The move was in line with our previous forecast and now we expect further downside pressure on gold prices in the short term.

 

 

Gold price technical outlook

 

Gold prices failed to resist above $1,747 on Monday, which is the 23.6% Fibonacci Retracement (Fibo) level of the latest rally from the November 3 bottom at $1,617. The move lower also prompted gold price to settle the day below the rising (dashed) trendline support, then at $1,744.

Buyers found support once again near the $1,740 region though, triggering a recovery rally above the $1,750 level this Tuesday morning. In doing so gold price has recaptured both the 23.6% Fibo level and the rising trendline support-turned-resistance now at $1747 and$1749 respectively the next upside barrier is seen around the key figure mark at $1,760 Acceptance above the latter will be critically unleashing any additional upside toward $1,770

The 14-day Relative Strength Index (RSI) looks poised for further gains after already inching higher from just above the midline This combined with today’s early morning breakout above short-term resistance suggests we could see some more upside in gold prices over coming sessions However any retreat below minor support around $1,740 would negate the immediate bullish outlook.

 

 

 

USD/CAD pair weekly decline

USD/CAD pair weekly decline, The USD/CAD pair remains under some selling pressure for the fourth successive day on Friday and drops to a fresh weekly low heading into the European session.

 

Topics
The after-effect of President Trump
The US-Canada Trades
The COVID-19 worsening in China

 

 

 

 

 

The after-effect of President Trump

 

Spot prices, however, manage to hold above the 1.3300 round-figure mark
and remain at the mercy of the US Dollar price dynamics.
The Canadian Dollar continues to be weighed down by concerns
over trade relations with the US after President Trump
announced plans to impose tariffs on Canadian steel and aluminium imports.
The move sparked fears of a potential trade war between the two countries,
which could weigh heavily on Canada’s export-dependent economy.
Meanwhile, data from Friday showed that inflation in Canada ticked higher in March as energy prices rose sharply.
However, core inflation remained well below 2%,
suggesting that there is little pressure on businesses to raise prices.
This could keep a lid on any further gains in CAD rates in the near term.

The minutes from the most recent Federal Open Market Committee (FOMC) meeting were released on Wednesday
and showed a more dovish assessment of the economy than expected.
This has weighed on the US dollar and is seen as a key factor acting as a headwind for the USD/CAD pair.

The minutes showed that members were concerned about downside risks to growth,
including trade tensions and slowing global growth.
In addition, members noted that inflation remains muted despite stable labour market conditions.
As a result, many members felt that it was appropriate to keep interest rates unchanged at this time.

This dovish tone is weighing on the US dollar and helping push the USD/CAD pair lower.
The pair is trading near 1.3250, which is just above its lowest level in nearly two weeks.
With no major data releases scheduled for today,
we could see further downside in the pair if traders continue to sell the US dollar.

 

 

 

 

 

The US – Canada Trades

 

 

The Fed raised rates by 25bps at their December meeting, which was widely expected.
However, what wasn’t expected was that they would signal a slower pace of hikes in 2019.
This has led to a lot of speculation about what the Fed is up to.

There are a few possible explanations for why the Fed might be slowing down its rate hiking cycle.
One possibility is that they want to avoid spooking markets and causing a sell-off.
Another possibility is that they believe the economy is not as strong as it appears,
and they don’t want to overheat it by raising rates too quickly. Whatever the reason,
this change in tone from the Fed has caught many market participants off guard
and has led to some volatile trading conditions in recent weeks.

However, one thing remains clear: The Fed still intends to gradually tighten monetary policy over time
and we can expect at least one more rate hike in 2019 (most likely at their June meeting).
So, while there may be some short-term turbulence caused by this change in strategy from the Fed,
investors should remain focused on the longer-term outlook
for interest rates which still point to higher levels eventually.
It seems that everywhere you look these days,
there’s some sort of news or commentary about the stock market.
And while a lot of it is positive, there’s also been a fair share of negativity as well.
So, what does all this mean for traders and investors?

Well, first off, it’s important to remember that the stock market is just one part of the overall economy.
There are other factors at play that can impact markets – both positively and negatively.
For example, we’re seeing concerns about the coronavirus outbreak in China weighing on global markets.

 

 

 

 

 

 

The COVID-19 worsening in China

 

This is understandable given the potential implications for global trade and economic growth.
However, it’s important to keep things in perspective,
yes, there are risks associated with the outbreak but so far it seems contained
and its impact appears to be limited (at least so far).

In terms of trading opportunities, this current environment presents both challenges
and opportunities. On one hand, volatility has picked up which can make things more difficult for traders.
The COVID-19 situation in China is worsening by the day,
and this is having a knock-on effect on oil prices.

While the global demand for oil remains strong,
traders are increasingly worried that the outbreak will dent fuel demand in China,
the world’s second-largest consumer of crude.
This is keeping a lid on any further gains for oil, and as a result, the USD/CAD pair.

However, it’s important to remember that while the current situation in China is worrying,
it’s still too early to say how big an impact it will have on global oil demand.
So far, there has been no significant slowdown in other major consuming nations such as the US or Europe.
And with prices already at relatively low levels,
there could be scope for a rebound if fears around COVID-19 start to ease.

 

 

 

How did Disney cut costs on streaming losses?

How did Disney cut costs on streaming losses?, Bob Iger is returning to lead Walt Disney Co, and he’s vowing to cut costs and restore profits in just two years.

 

Topics
Bob Iger: The Man Behind Disney
Is Disney’s Stock Drowning?
The Risks and Rewards of Trading

 

 

 

 

Bob Iger: The Man Behind Disney

 

This is a different side of Bob Iger that Wall Street hasn’t seen before,
and it’s one that they’re sure to be impressed by.
Iger took over as CEO of Disney in 2005 and during his tenure,
the company has undergone massive changes.
He oversaw the acquisitions of Pixar, Marvel, Lucasfilm, and 21st Century Fox.
He also launched Disney+, a streaming service that has quickly become a major competitor to Netflix.

Now, with all of those acquisitions behind him, Iger is focused on cutting costs
and restoring profitability at Disney.
And he’s already off to a good start: In the first quarter of 2020 (the most recent data available),
Disney reported earnings that beat analysts’ expectations thanks to cost-cutting measures.

Iger’s return could be the shot in the arm that Disney needs to get back on track.
The company has been struggling to keep up with changing consumer habits
and competition from streaming services such as Netflix.
Under Iger, Disney completed some of its biggest acquisitions,
including Pixar, Marvel and Lucasfilm.
He also oversaw the launch of its successful streaming service, Disney+.

“He (Iger) is probably one of the few people who can come in and turn things around,” said Brian Wieser,
an analyst at Pivotal Research Group. “The question is whether he wants to do it.”
It’s clear that Iger is serious about turning things around at Disney after last year’s spending spree.
And if he can deliver on his promise to cut costs
and restore profits in just two years’ time,
there’s no doubt that Wall Street will be impressed by this new side of Bob Iger.

 

 

 

 

Is Disney’s Stock Drowning?

 

The business has become a drag on earnings as Disney spends heavily on content to attract subscribers,
testing investor patience and contributing to a 40% slide in its shares so far this year.
As the COVID-19 pandemic continues to upend the traditional media landscape,
one company that could be in for a tough road ahead is The Walt Disney Company.
The entertainment giant has been hit hard by the closure of its theme parks and resorts around the world,
and its film business has also taken a hit with movie theatres shuttered.
In addition, Disney+ has seen subscriber growth slow down in recent months.

All of this means that Disney stock could be under pressure in the near term.
The most immediate target of that selling pressure could be Disney+,
the streaming service that Iger helped launch in 2019.
Losses at the unit more than doubled in the last reported quarter to $1.5 billion.
The company has lost billions of dollars in value as its streaming losses mount.
But there may be light at the end of the tunnel.

Disney+ is the company’s streaming service,
and it has struggled to find its footing since launching in November 2019.
The service has lost subscribers every quarter since then,
and it posted a $1 billion loss last quarter alone.

But there are signs that Disney+ is starting to turn things around.
The service added 8 million subscribers last quarter, which was better than expected.
And analysts believe that Disney+ could eventually become profitable
if it can get more people to subscribe at higher prices

 

 

 

 

The Risks and Rewards of Trading

 

When it comes to trading and investing, there are always going to be certain risks
that come along with the potential rewards.
However, this does not mean that you should simply avoid all risks altogether.
In fact, taking on some level of risk is essential in order to achieve any sort of success.
The key is to find a balance between the two that work for you and your individual goals.

This can be a difficult task, but it is one that becomes much easier with experience.
As you gain more experience in the world of trading and investing,
you will begin to develop a feel for what types of risks are worth taking on and which ones are best avoided.
“The problem is that Iger can’t stay on forever,
He already bumbled the transition to Tom Staggs in 2016 and now (Bob) Chapek,” Rosenblatt Securities said.

Still, Disney shares were 10% higher in premarket trading on Monday,
a sign of confidence in the executive who led the company for 15 years.
Bob Iger has been a steady hand at the helm of the Magic Kingdom,
steering it through some tough times and emerging stronger each time.

Now, with Iger set to step down as CEO later this year,
investors are betting that Disney will continue to thrive under new leadership.
The stock is up more than 50% since Iger took over as CEO in 2005,
and there’s no reason to think that momentum won’t continue under his successor.
Iger has made some smart moves during his tenure at Disney,
including acquiring Pixar, Marvel, and Lucasfilm (which gave the company control of “Star Wars”).
He also oversaw the launch of successful new ventures
like Disneyland Shanghai and Walt Disney World’s Pandora: The World of Avatar.

 

 

 

The Feds Confusing Interest Rate Policy

The Feds Confusing Interest Rate Policy, the ships loaded with tension came for the fourth time following the Fed’s decisions issued on Wednesday.

 

Topics
The Fed’s Inflation Fighting Plan
Inflation in the United States

 

 

 

 

 

The Fed’s Inflation Fighting Plan

 

November 2nd, where the Federal Reserve raised interest rates by 75 basis points for the fourth time without considering the causes of a global recession crisis.
The month of March witnessed the first Fed decisions that followed almost the same thought pattern.

 

The Federal Reserve has started to fight inflation by developing a plan that it does not want to return for whatever reasons.
Once the inflation ceiling reaches the 2% level, the Fed can begin to refrain from that strict policy,
and this is what was said at the last Fed meeting, in which it approved raising interest rates by five and a half.
Seventy basis points to reach a range of approximately 3.75 -4%

 

And the committee’s decision was reinforced by the emergence of employment news issued by the Ministry of Labor for October,
where vacancies grew from 10.3 in September to 10.7 in October. far in the coming period.

 

 

Inflation in the United States

 

The level of inflation during September reached 8.2%, contrary to all expectations,
as it recorded the highest levels that the American economy has not witnessed in more than 40 years.
It will be more than expected in the coming period,
and he also said that the matter has now become foggy and there is no going back on the decision to raise interest rates
on the short-term or medium-term level until the desired goal is reached
and the inflation ceiling that has swept the US economy is under control
and has begun to affect the general climate of the economy since the beginning of the year.

Powell’s recent statements during the meeting brought a lot of uncertainty about the economy and markets,
and he stressed that we still have some strides to go during the coming period to deal with the spectre of inflation that swept the country.

 

 

 

 

US: Get ready for the big fall

US: Get ready for the big fall, The year ahead will mostly feature falling market rates, as the Fed peaks out and the market anticipates future rate cuts.

 

Topics
The Impact of Inflation and Jobless Claims
Indices heavy losses
The policy of the Federal Reserve
Overall Volatility

 

 

 

 

The Impact of Inflation and Jobless Claims

 

The curve should dis-invert through the year, and ultimately will steepen out from the front end.
The fall in rates will come from the back end first,
but should later be dominated by falls in front-end rates in the second half.
This is good news for investors and traders who are looking to take advantage of lower interest rates.
U.S. stocks are seen opening higher Thursday,
with the Dow Futures contract up 60 points, or 0.2%, at 07:00 ET (12:00 GMT).
The move comes after sharp losses in the previous session,
as investors await key inflation data and more midterm election results.
Investors are cautious ahead of the release of inflation data for October, which is due out later in the day.
The report is expected to show that consumer prices rose 0.3% last month, after climbing 0.2% in September.
The rise in prices is being driven by increases in costs for housing and healthcare.
However, some analysts believe that the overall trend remains one of the moderate inflationary pressures.

 

 

 

 

 

Indices heavy losses

 

The main stock indices in the US closed with heavy losses on Wednesday
as the outcome of the midterm elections remained unclear.
Although it seemed likely that Republicans would take control of the House,
this did not stop investors from selling off their stocks.
The blue-chip Dow Jones Industrial Average fell over 600 points or 2%,
while the broad-based S&P 500 dropped 2.1%.
The tech-heavy Nasdaq Composite was not spared either, closing 2.5% lower.

Investors were clearly worried about what a Republican-controlled House could mean for future policymaking,
particularly with regard to taxes and regulations.
However, it is worth noting that even if the Democrats had won control of both chambers of Congress,
gridlock would have still been a very real possibility given how divided our politics are right now.

 

 

 

 

The policy of the Federal Reserve

 

Inflation data for the United States will be released later this week
and traders are eagerly awaiting the release to see if it provides any clues as to the future monetary policy of the Federal Reserve.

Investors have been worried that the Fed may raise interest rates too quickly in response to inflationary pressures,
which could lead to a sharp slowdown in economic growth.
However, recent comments from Fed officials suggest that they are aware of these concerns and are likely to proceed with caution.

The most important thing for investors to watch in this data release is not just the headline number for inflation,
but also the “core” rate which excludes volatile items like food and energy prices.
If core inflation is rising at a faster pace than overall inflation,
then it suggests that there is more underlying pressure on prices.

 

 

Overall Volatility

 

Away from politics, this week’s inflation data will give us a better idea of how fast interest rates are likely to rise over the coming months. With markets still digesting last week’s surprise announcement by President Trump that he intends to nominate Jerome Powell as the next Chairman of The Federal Reserve,
there is plenty of uncertainty surrounding monetary policy at present.
A clear signal from Thursday’s data would be very welcome indeed.

The cryptocurrency market is in turmoil, with the decision of Binance to back out of the rescue of smaller crypto exchange FTX leaving the latter on the brink of collapse.

This has created a degree of uncertainty among investors and traders.
However, there are still some quarterly earnings to digest,
with fashion retailers Tapestry and Ralph Lauren,
as well as Aurora Cannabis due to report today.
Oil prices have also retreated on concerns for demand growth from China as cases surge and U.S. crude oil inventories rise.
U.S. crude oil stockpiles unexpectedly rose last week,
according to data from the Energy Information Administration Wednesday,
taking inventories to their highest since July 2021.

The bulk of this increase, however, could be put down to a roughly 3.5M barrel draw down from the Strategic Petroleum Reserve.
Prices have dropped sharply as a result with Brent falling more than 6% so far this week and WTI more than 7%.
Gold futures have also fallen 0.1% on the news.

 

 

 

Gold prices: A roller coaster ride

 

Gold prices have been on a roller coaster ride in recent weeks, as investors try to decipher the Fed’s next move on interest rates.

 

Topics
Gold and Dollar Correlation
Gold and Unemployment Correlation
Volatile Week for Precious Metals

 

 

 

 

 

Gold and Dollar Correlation

 

Prices slipped on Tuesday as the dollar regained some ground,
while investors braced for inflation data later this week that could provide more clues on the Fed’s policy path.

Spot gold was down 0.4% to $1,668.50 per ounce by 0844 GMT,
after hitting a three-week peak in the previous session when a weaker dollar boosted prices.
U.S gold futures shed 0.5% to $1,671.

The U.S. dollar has been on a quest to retain lost ground,
prompting a pause in gold’s surge post-jobs data.
The dollar index rose 0.3% higher after hitting a more-than-one-week low on Monday,
making bullion more expensive for overseas buyers.
However, the greenback’s rally may be short-lived as the underlying fundamentals remain weak.

 

 

 

 

 

Gold and Unemployment Correlation

 

The U.S. unemployment rate rose to 3.7% in October, according to data released on Friday,
which has induced optimism that the Fed will shift to less aggressive interest rate hikes.
This news helped gold record its best day since March 2020 as traders and investors alike see this as a good opportunity to invest in the precious metal.

This week, traders and investors will be focused on two key events:
the release of inflation data on Thursday and the U.S. midterm elections on Tuesday.

The inflation data is expected to be a key factor in the next Fed rate decision,
so markets will be closely watching for any clues about future policy direction.
Meanwhile, the midterm elections will determine control of Congress and could have a major impact on market sentiment.

Rising interest rates are often seen as a sign of impending inflation,
which generally leads to an increase in the price of gold.
This is because investors tend to flock to the precious metal as a safe haven asset when they believe that the value of other assets will decrease.
However, rising interest rates also have another effect on gold prices
they increase the opportunity cost of holding the asset.

This is because when interest rates rise, so do returns on other investments such as bonds and cash equivalents.
This makes these assets more attractive to investors,
who may then sell their gold holdings in favour of these alternatives.
As a result, we could see some selling pressure on gold prices if interest rates continue to rise in the coming months.

 

 

Volatile Week for Precious Metals

 

It’s been a volatile week for precious metals as investors keep a close eye on developments surrounding the COVID-19 pandemic.
After hitting fresh highs earlier in the week, silver prices have pulled back somewhat as traders weigh the prospects of further lockdown measures in top consumer China against vaccine progress and stimulus hopes.
Platinum and palladium prices have also come under pressure,
although both metals are still holding onto gains made earlier this month.

With infection rates rising in many parts of the world and concerns about new variants of COVID-19,
there is a growing risk that additional restrictions will be imposed to try to contain the spread of the virus.
This could weigh on demand for precious metals,
which are often used as safe haven assets during times of economic uncertainty.

 

 

 

The Dollar eases as the gold prices rebound

 

The dollar eases as the gold prices rebound; gold prices regained some ground on Friday as a slight pullback in the dollar helped alleviate some pressure from the U.S. Federal Reserve’s hawkish policy narrative.

 

Topics
What to expect from gold
Volatile but Profitable
What is the Fed’s perspective on interest rates?

 

 

 

 

What to expect from gold?

 

The Fed’s minutes from its March meeting, released on Thursday,
showed that policymakers were unanimous in their decision to raise rates and several members saw the need for additional rate hikes this year.
The strong data has bolstered expectations for another rate hike in June,
which would be the third this year.

The rise in gold prices came despite a strong rally in equity markets,
which have been boosted by robust corporate earnings and economic data of late. Gold is often seen as a safe haven asset during times of market turmoil or geopolitical uncertainty but has been under pressure recently as investor risk appetite remains high.

Looking ahead, gold prices may continue to see volatility as investors
digest more corporate earnings reports and await further clues on
monetary policy from central banks around the world.

The most recent data shows that gold is up 0.6%,
but this is still below the high of $1,700 per ounce that was seen just a few weeks ago.
While some believe that there may be more upside potential in gold prices,
others are concerned that the market could correct lower in the near term.
Either way, it looks like traders and investors will continue to closely
watch spot gold prices for any clues about where the market may be headed next.

 

 

 

 

Volatile but Profitable

 

Gold prices have been on a roller coaster ride in recent months,
testing the nerves of even the most experienced investors.
After reaching record highs in August, gold prices began to tumble,
and many experts believe that we are not out of the woods yet.

However, there are signs that gold may be beginning to stabilise.
Clifford Bennett, chief economist at ACY Securities believes that the
Fed’s recent interest rate hike and pledge to keep fighting inflation will help
to support gold prices in the short term.
Reuters technical analyst Wang Tao also believes that spot gold may bounce
back to $1,648 per ounce after breaking resistance at $1,632.

While it remains to be seen where gold prices will head next,
it is clear that they continue to be a volatile and risky investment.
However, for investors who are willing to take on some risk,
gold could still offer some profitable opportunities in the months ahead.

 

What is the Fed’s perspective on interest rates?

 

When it comes to investing in gold, there are pros and cons to consider.
On one hand, gold is often seen as a hedge against inflation.
This means that if the cost of living goes up, the value of your investment in gold should also go up.
However, on the other hand, high-interest rates can make it less attractive
to invest in gold since it doesn’t offer any yield itself. So what’s an investor to do?

It really depends on your individual goals and risk tolerance.
If you’re looking for stability and want to protect yourself against inflation,
then investing in gold may be a good option for you.
However, if you’re more interested in potential returns and are willing to take on more risk,
then there may be better options out there for you.
Ultimately, it’s important to do your own research and figure out what makes sense for you personally.

With the release of the U.S. non-farm payrolls data looming,
investors are closely watching for any clues on the Federal Reserve’s rate-hike stance.
A strong jobs report could reinforce the Fed’s hawkish posture and keep gold prices under pressure,
while a weaker report could provide some support for bullion.

The labour market is one of the most important indicators of economic health.
A strong labour market indicates that businesses are hiring and consumers have disposable income to spend.
The payroll data is closely watched by traders and investors because it provides a snapshot of the labour market.

A deceleration in job growth would be seen as a negative sign for the economy and could lead to lower interest rates.
This would be bullish for gold, as lower interest rates make gold more attractive as an investment.
However, if we see an upside surprise in the payroll data,
it would reinforce the Fed’s higher terminal rate posture and keep gold prices under pressure.

 

 

 

 

Global stocks gain amid big volatility in China

 

Global stocks gain amid big volatility in China

 

Topics

The most important main indicators
Market Highlights

 

 

 

 

Global stocks gain amid big volatility in China

Despite the sharp fluctuations in the markets in China, the main markets in Asia also continued their upward wave, after the markets witnessed a state of optimism regarding the decision of positive profits achieved in the United States.

 

While Hong Kong stocks rose to achieve gains for the day, and this was supported by the technology sector, and the Hang Seng index rose by about 1% after suffering on Monday from the worst day in trading since the global financial crisis in 2008, and this also came amid the tightening by President Xi Jin Ping and control of the government.

 

Global stock indices also recorded a partial rise, after recording a rise for two consecutive days, with the markets achieving the extent of strong gains in Japan, Australia, and the United States, while we witnessed fluctuations on the Standard & Poor’s 500 Index (S&P 500) in the Asian sessions.

 

The Chinese yuan fell to its lowest level in nearly 10 years, at a time when fears spread after President Xi took office, which could change the way the central bank takes decisions that may weaken growth and destabilize geopolitical stability.

 

Five companies in the Standard & Poor’s 500 Index managed to achieve profits in the third quarter, but more than expected, including Microsoft Corp, Alphabet Inc., Amazon.com, and Apple.

 

 

 

 

 

The most important main indicators

 

(Global stocks gain amid big volatility in China)

The Topix index rose 1.2%.

The S&P ASX rose 0.2%.

The Hang Seng Index rose 0.7%.

The Shanghai Composite Index rose 0.7%.

 

 

Market Highlights

 

(Global stocks gain amid big volatility in China)

The Bloomberg Spot Dollar Index fell 0.1%.

The euro rose 0.1% to $0.9886

The Japanese yen recorded 148.83 to the dollar

Bitcoin fell by 0.2% to $ 19,347.02

Ethereum fell 0.4% to $1,346.4

 

 

 

Japan’s Economic Crisis

 

Japan’s Economic Crisis

 

 

Japan’s Economic Crisis, Japan is no stranger to market volatility as the world’s third-largest economy,

the country’s recent statement that it will enhance its foreign currency reserves shows that it is taking precautions to insulate itself from any future economic crisis.

 

Topics

Traders and investors rejoice
The Pair: Flipped
The Fed’s Gradual Ascent

 

 

 

 

 

Traders and investors rejoice

 

This action may signify improved stability in Japanese markets for traders and investors.

And, given the country’s large cash reserves, there may be chances for individuals wishing to invest in a range of assets. Whether you want to invest in stocks, bonds, or real estate, Japan might be a good place to put your money.

This is hardly surprising considering Japan’s recent announcement of an imminent economic stimulus plan.

The package is estimated to be valued at JPY25.1 trillion ($170 billion USD).

This is a large sum of money, and it is apparent that the Japanese government is serious about fueling its economy.

Some worry that the stimulus will be too big and will lead to inflationary pressures in the future.

Shunichi Suzuki, Japan’s Finance Minister, has addressed these worries, saying that “we will always take action against excessive actions.” It’s encouraging to see that the Japanese government is aware of potential concerns and is taking precautions to prevent them.

 

 

 

 

The Pair: Flipped

 

The USD/JPY pair is struggling to find impetus today, bouncing in a narrow zone during the first half of trade. #

The pair is now trading slightly over the 148.00 level, and comfortably inside yesterday’s trading range.

Because there does not appear to be a clear trigger driving price movement at the present,

we may see more of this choppy consolidation in the short term.

The US dollar has been hovering at a three-week low, which has proven to be a significant headwind for the USD/JPY pair.

Softer US macro data reported on Tuesday indicated hints of a slowdown in the world’s largest economy,

perhaps forcing the Federal Reserve to adopt a more hawkish position.

This resulted in another drop in US Treasury bond rates, which continues to weigh on the greenback.

 

The Fed’s Gradual Ascent

 

The Fed is still projected to raise interest rates by 75 basis points in November and to continue tightening policy,

albeit at a slower pace. The Bank of Japan, on the other hand, is sticking to its ultra-easy monetary policy.

As a result, the path of least resistance for the USD/JPY pair is to the upside.

However, bulls are hesitant ahead of the Bank of Japan meeting on Thursday,

which might give some guidance for future rate rises.

The USD/JPY pair is vulnerable to range-bound market behaviour as it approaches important central bank event risk.

Market participants are hesitant to make strong bets, which might lead to the present range being extended.

The US New Home Sales data will be issued later in the morning North American session and may offer some momentum to the market. However, bond rates and overall market risk sentiment will have an impact on the key currency pair.