The Dollar Awaits Significant Economic Data, Including the Federal Reserve Meeting
The US dollar is anticipating the release of numerous economic data next week,
which will have a strong impact on its trading, particularly the results of the US Federal Reserve meeting.
These results could significantly influence the movements in the currency market,
especially in dollar pairs, as they may provide hints regarding the future monetary policy of the bank this year and indicate the timing of a potential rate cut.
Contents
Silver
Silver Surpasses the $30 Mark, Reaching Its Highest Level Since 2013
it has risen to over $30 per ounce, its highest level since January 2013,
with a year-to-date increase of more than 25%, supported by strong investment and industrial demand.
Although exchange-traded funds have shown little interest in silver,
actual sales have increased since the metal appeared undervalued.
Back in January, the gold-to-silver ratio exceeded 90, the widest spread since September 2022.
It has since narrowed to around 80 and is expected to decrease further to 70 if the Federal Reserve cuts interest rates and the US economy remains resilient.
Previous US consumer inflation data and the key monthly jobs report have boosted the chances of a Fed rate cut in 2024. However, this has been partially countered by rising export and import prices and
hawkish comments from policymakers. Meanwhile, the commodity continues to benefit from its use in solar panels,
which are expected to reach a record high this year and push the silver market into its fourth consecutive deficit.
Dow Jones
Dow Jones Index Reaches a New Record High, Boosting Gains for the Fifth Consecutive Week
The Dow Jones closed at a new record high of around 40,003 points, with the S&P 500 rising by 0.1%,
while the Nasdaq ended slightly lower.
Market discussions continue to be dominated by interest rates and inflation,
as investors closely monitor economic data and statements from Federal Reserve officials for any changes in interest rate expectations.
On the corporate front, shares of Walmart and Caterpillar rose by 1% and 1.5%,
respectively, driving the Dow Jones higher.
Reddit shares surged by 10% after the company announced a content partnership with OpenAI.
Conversely, meme stocks declined for the third session,
with GameStop shares falling by 19.7% and AMC shares dropping by 5.2%.
Over the week, the S&P 500 added 1.4% and the Nasdaq gained 1.9%,
marking their fourth consecutive week of gains, the first since February.
The Dow Jones recorded its fifth positive week in a row, with a 0.9% gain for the period.
The Dollar Awaits Significant Economic Data