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The Japanese Yen strengthened against the US Dollar after the Bank of Japan's hawkish policy move, raising rates by 15 basis points and reducing bond purchases. Japan's Ministry of Finance also spent ¥5.53 trillion ($36.8 billion) in July to stabilize the Yen. Meanwhile, the US Dollar weakened as the Federal Reserve maintained interest rates. Traders now await US economic data, including the ISM Manufacturing PMI and Initial Jobless Claims, for further guidance.
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Market Review | August 2, 2024
Market Review | August 2, 2024
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The Federal Reserve maintained interest rates unchanged in the latest policy resolution and closely monitored the labor market and inflation to guide future monetary policy. Although there are differences in the market's expectations for an interest rate cut in the short term, Federal Reserve Chairman Powell emphasized the resilience of the labor market and the commitment to the inflation target, indicating that in achieving the dual mission of maximizing employment and stabilizing prices, the F
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As we approach the Nonfarm Payroll (NFP) report on August 2, 2024, market participants are keenly observing the data for insights into the U.S. labor market. The report is expected to show an increase of 194,000 to 206,000 jobs for July, indicating modest growth. This suggests potential softening in the labor market. A weaker-than-expected report could prompt the Fed to consider rate cuts, influencing the USD. Major currency pairs and gold prices will likely see volatility around the NFP release
The global market experienced notable fluctuations due to anticipated central bank decisions and economic data releases. Japanese stocks fell and the yen strengthened on speculation of a Bank of Japan rate hike. US stocks, driven by tech giants like Nvidia, saw gains as the Fed hinted at potential rate cuts in September. Contrarily, China's manufacturing activity contracted, raising economic recovery concerns. Geopolitical tensions and corporate updates, Samsung's earnings and Intel's job cuts
The highly anticipated Fed’s interest rate decision was disclosed yesterday, hammering the dollar’s strength lower as Fed Chief Jerome Powell explicitly signalled that a September rate cut is possible. The U.S. central bank is balancing both inflation and recession risks, with interest rates adjusted to curb inflation while maintaining a solid labour market.
Gold prices surged on Wednesday after the Federal Reserve suggested a potential rate cut in September. A decline in US Treasury yields and the US dollar, which hit its lowest level since July 18, further increased the appeal of gold. Investors are closely monitoring the Fed's upcoming policy decision. Geopolitical tensions in the Middle East, particularly between Israel and Iran, also drove investors towards the safe-haven asset, adding to gold's rise.
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Market Review | August 1, 2024
Market Review | August 1, 2024
On Tuesday (July 30th), the US dollar index hit a nearly half month high of 104.79 before the US market
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Against this backdrop, the gold market is at a critical juncture. The interplay between monetary policy, economic data, and market sentiment will continue to influence the trajectory of gold prices. If the Federal Reserve adopts a dovish stance in its upcoming policy statement and hints at a rate cut in September, this could drive down the US dollar and help gold rebound. Furthermore, the recent cracks in the European economy may prompt the European Central Bank to also cut rates in September, w
Global Market Insights: Key Economic Events and Their Impact