MHMarkets:Powell says inflation may land softly, three major U.S. stock indexes are weak

Fundamentals:

Yesterday, the annualized quarterly rate of the core PCE price index in the first quarter of the United States was recorded at 5.2%, higher than the expected 5.10%; the final value of the annualized quarterly rate of real GDP in the first quarter of the United States was recorded at -1.6%, lower than the expected -1.50 %. Federal Reserve Chairman Jerome Powell said yesterday that the U.S. economy is strong enough to withstand monetary policy moves. With a strong labor market, there are ways, but no guarantees, to return to 2 percent inflation. A US soft landing is possible, but will be quite challenging as the path gets narrower. Powell also reiterated that the Feds will focus on inflation.

Yesterday, the 2022 FOMC vote committee, Cleveland Fed President Mester said that he hopes that the US interest rate will be higher than 4% next year, and that raising interest rates is very necessary to reduce inflation. She advocated for a 75 basis point rate hike. She also said that U.S. inflation is likely to rise further and that long-term inflation expectations for businesses and households will continue to rise, but interest rates are moving toward “more normal levels” and the U.S. economy is not expected to decline.

Technical:

Dow: Before the market on Wednesday, U.S. stock index futures were mixed, with no clear direction. The Dow rose and fell. Dow futures rose 42.0 points, or about 0.14%, to 30,989.00 points; S&P 500 futures fell 0.8 points or About 0.02 percent, at 30,989.00; Nasdaq 100 futures fell 14.7 points, or about 0.13 percent, to 11,623.10. The bottom pays attention to the support position 30638, and the top pays attention to the position near the support pressure position 31900.

USD: Yields on the 10-year U.S. Treasury note continued to fall to 3.087%. The dollar index achieved two consecutive positives and broke through the 105 mark, closing up 0.574% at 105.12; the dollar bulls were cautious and focused on the target position of 103 below.

Gold: Gold was on a roller coaster ride. It dived after touching the intraday high of 1832.63, and gave up all gains. It finally closed down 0.1% at $1817.92 per ounce; If it breaks through 1830, then focus on the second target position of 1840.

Crude oil: In terms of crude oil, the two crude oils dived in the U.S. session. WTI crude oil dived sharply when it hit a high of $113.99, and finally closed down 2.09% at $111.27 per barrel; Brent crude oil closed down 1.59% at $115.52 per barrel . Crude oil prices fell after fluctuating near the 110 pressure level above, and the bottom focused on the target position near 100.

(The above analysis only represents the analyst's point of view, the foreign exchange market is risky, and investment should be cautious)