The Fed suspended its rate hike early Thursday morning as expected, but the dot plot hinted at 2 more rate hikes of 25 basis points each during the year, which was more hawkish than the market had expected.
Gold price remained in a bearish zone below the $2,000 level against the US Dollar. The price traded below the $1,980 support to move into a short-term bearish zone.
WCG Markets:2023-06-15
The Chinese government is presently exploring the possibility of implementing a significant stimulus initiative aimed at bolstering the nation's economy.
Argentine presidential candidate Javier Miley proposed replacing the national currency of the peso with the US dollar, hoping to limit the high inflation rate, which reached 109% in May. He believes that using the dollar can help to cope with the country's economic problems.
The USD/JPY currency pair has experienced a notable shift in market dynamics as the price line recently broke below a bullish channel that had been guiding its upward trajectory.
This attention of investors for this week attention is fixated on the actions of central banks, particularly the Federal Reserve and the European Central Bank (ECB).
NZD/USD was 0.17% higher at the time of writing after rising from a low of 0.6144 to a new high of 0.6161 in Tokyo market trading. The focus is on the Federal Reserve today following Tuesday's inflation report, which showed stable core inflation.
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On Wednesday (June 14), spot gold rebounded slightly during the Asian session and is currently trading at $1947.33 per ounce.
WCG Markets:2023-06-14
More than 90% of economists said the Federal Open Market Committee would hold its federal funds rate at 5.00-5.25%.
The Federal Reserve interest rate decision is just one week away, and the price of the US Dollar Index (DXY) – which measures the value of the USD against a group of other currencies – is looking pretty neutral with a bit of a bullish leaning. So, things are looking okay for now – fingers crossed!
The gold price is oscillating around US$ 1,980 again on 7th June as markets reassess the landscape with China looking to stoke some growth and next week’s Fed meeting coming into view.
European stock indexes showed a slight decline in thin trading on Monday, while Wall Street futures were optimistic after a debt ceiling deal was reached between US President Joe Biden and top Republican Kevin McCarthy. However, the deal is expected to bring only short-term relief as worries about inflation and rate increases persist. Asian stocks were mostly up, except for falling Chinese stocks after data showed profits in the industrial sector were slumping, signifying an economic slowdown.
The FTSE 100 is closing in again on the 8,000-point milestone it breached for the first time ever earlier this year, with five weekly gains in a row close to putting the index in official bull market territory.
The week ends with the stock exchanges experiencing a bullish resolution, thanks to the agreement reached on the US debt ceiling and the possibility of a pause in the hike cycle perpetuated by the FED as early as the meeting on 14 June. The rollover period starts this week in combination with other relevant macroeconomic data.
On Tuesday (June 13), spot gold shocked slightly up during the Asian session, and is currently trading near $1958.50 per ounce.
WCG Markets:2023-06-13