Let’s find out why.A painful rate increase amid an economic slowdown? The precious metal is aiming to recover its shine but the latest consumer-price report didn’t do much to make that happen.The precious metal is aiming to recover its shine but the latest consumer-price report didn’t do much to make that happen. The precious metal is in its seventh straight day of losses and has erased about 13% from its record high around $2,080.The precious metal is in its seventh straight day of losses and has erased about 13% from its record high around $2,080. Investors flee to safe-haven assets during times of geopolitical uncertainty. Gold is a rare bright spot in such turbulent periods.Investors flee to safe-haven assets during times of geopolitical uncertainty.
“The strong Q3 GDP result reinforces the market tension between good data on the one hand and the prospect of higher rates and a more restrictive Fed on the other,” Brian Rose, senior U.S. economist at UBS, said in a note. Gross domestic product increased at a 4.9% annualized rate last quarter, the fastest since the fourth quarter of 2021, the Commerce Department’s Bureau of Economic Analysis said in its advance estimate of third-quarter GDP growth. Economists polled by Reuters had forecast GDP rising at a 4.3% rate. While the Federal Reserve is widely expected to maintain steady interest rates at its upcoming policy meeting, it is anticipated to keep rates elevated for an extended period. The US Dollar Index (USDX, DXY) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of US trade partners’ currencies.
- The euro has been struggling to break out of its $1.05 consolidation.
- Earlier this month, the Securities and Exchange Commission’s (SEC) approval of BlackRock’s ETF application was falsely claimed by some reports, following which BTC soared to a much-anticipated $30,000 level.
- A deluge of purchasing managers’ surveys, euro zone inflation and GDP data, and U.S. nonfarm payrolls at the end of the week will also be competing for the top of traders’ minds.
- An eighth straight week of losses is staring at the European currency as traders flee to the dollar for continued gains.An eighth straight week of losses is staring at the European currency as traders flee to the dollar for continued gains.
Dollar buyers have turned up the heat on recently trapped shorts which need to escape. The European currency’s troubles continue as the dollar is fueled by more economic data, high interest rates, and safety-seeking.The European currency’s troubles continue as the dollar is fueled by more economic data, high interest rates, and safety-seeking. The head of Australia’s central bank on Thursday said the surprisingly high reading for Australian inflation on Wednesday was around policymakers’ expectations, and they were still considering whether it would warrant a rate rise.
Earlier this month, the Securities and Exchange Commission’s (SEC) approval of BlackRock’s ETF application was falsely claimed by some reports, following which BTC soared to a much-anticipated $30,000 level. Despite the revelation of fabricated news, BTC retained its positive track, currently acquiring a 16-month high. Bitcoin (BTC), retaining its highest position in the world of cryptocurrencies, continues to garner attention among investors and enthusiasts. The speculations on the impending Bitcoin ETF approval remain a key contributor to Bitcoin’s price. The Fed and BoE are both expected to keep rates steady so, barring any surprises, the focus will be more around the message the policymakers communicate. The common currency has had a quiet October, and still is not far off a 10-month low of $1.0448 hit at the start of the month.
Data may be intentionally delayed pursuant to supplier requirements. The U.S. dollar remains underpinned by fundamental factors, but for the currency to get a further boost it needs to break and remain above a key dollar Fibo. The consumer-price index for August is due out later today. Volatility might slowly start picking up ahead of the release.The consumer-price index for August is due out later today. Volatility might slowly start picking up ahead of the release.
Gold Spot / U.S. Dollar
The euro has been struggling to break out of its $1.05 consolidation. Euro CPI, rate set, jobs ahead may change the narrative.The euro has been struggling to break out of its $1.05 consolidation. Euro CPI, rate set, jobs ahead may change the narrative. A recent surge in global interest rates is heightening pressure on the Bank of Japan to change its bond yield control next week. Meanwhile, the European Central Bank left interest rates unchanged as expected on Thursday, snapping an unprecedented streak of 10 consecutive rate hikes while insisting that any talk of rate cuts was premature. On October 24, the U.S. dollar plummeted to one-month lows, following the surprising fall of the US Treasury market.
Subsequent to Fed Chair Jerome Powell’s comment on the influence of Treasury yields on tightened financial conditions and the lesser need for interest hikes, the market saw a surprising turn on Monday. U.S. nonfarm payrolls data on Friday will also be important for expectations of the Fed’s rate hike path. Of the three central bank meetings, the BOJ’s is attracting the most scrutiny from investors given heightened speculation over a policy tweak. The most traded currency pairs in the world are called “the Majors” and the EURUSD leads this group as the most traded pair in the world. This pair represents the world two largest economies and has faced most volatility since the inception of the euro in 1999.
- The GDP numbers follow business activity data earlier this week that highlighted the strength of the U.S. economy relative to the United Kingdom and the European Union.
- Here’s what’s happening to the dollar.Fed chief Jerome Powell is set to speak later today.
- The precious metal is in its seventh straight day of losses and has erased about 13% from its record high around $2,080.The precious metal is in its seventh straight day of losses and has erased about 13% from its record high around $2,080.
- The dollar index held above 106.5 on Friday and was set to finish the week higher as further evidence that the US economy stayed resilient reinforced that higher-for-longer view on interest rates.
- While the Federal Reserve is widely expected to maintain steady interest rates at its upcoming policy meeting, it is anticipated to keep rates elevated for an extended period.
A recent surge in global interest rates has heightened pressure on the BOJ to change its bond yield control policy, as speculation mounts that the central bank could hike its existing yield cap at this week’s meeting. In the mix in Europe on Monday was cooling German state inflation data, which pointed to slowing headline inflation in the euro zone’s largest economy, and a separate release showing German gross domestic product fell by 0.1% quarter on quarter, though this was above expectations. The U.S. dollar was modestly higher against a basket of currencies on Thursday after data showed the U.S. economy grew at its fastest pace in nearly two years in the third quarter, once again defying dire warnings of a recession that have lingered since 2022.
The monster rally in the US dollar has been backpedaling from its weekly highs. Jobs data today is expected to inject fresh volatility.The monster rally in the US dollar has been backpedaling from its weekly highs. Jobs data today is expected to inject fresh volatility. Inflation data is coming up today and forex traders are expecting a fairly flat percentage figure. Dollar is retreating across the board.Inflation data is coming up today and forex traders are expecting a fairly flat percentage figure. A deluge of purchasing managers’ surveys, euro zone inflation and GDP data, and U.S. nonfarm payrolls at the end of the week will also be competing for the top of traders’ minds.
Euro / U.S. Dollar
The U.S. dollar eased a touch on Monday, and the yen managed to stay on the stronger side of 150 per dollar, as traders looked ahead to several major central bank meetings and a slew of economic data releases this week. ” – dollar bears, probably, as the US dollar flashed its first signs of weakness in months.“Is it happening, finally? ” – dollar bears, probably, as the US dollar flashed its first signs of weakness in months.
Dollar Set for Weekly Gains on Strong Data
Gold is a rare bright spot in such turbulent periods. In the third quarter, the US economy expanded by an annualized https://1investing.in/ 4.9%, comfortably surpassing the 4.3% forecast, primarily underpinned by robust consumer spending.
Major Stock Indexes
An eighth straight week of losses is staring at the European currency as traders flee to the dollar for continued gains.An eighth straight week of losses is staring at the European currency as traders flee to the dollar for continued gains. Conviction grows that the US dollar will stay well-bid as interest rates aren’t coming down any time soon. Euro bears got bruised.Conviction grows that the US dollar will stay well-bid as interest rates aren’t coming down any time soon. Interest rates aren’t going any lower, that’s for sure. What that means for gold is what traders try to figure out.Interest rates aren’t going any lower, that’s for sure. What that means for gold is what traders try to figure out.
US Dollar Index Streaming Chart
Gold price is widely followed in financial markets around the world. Gold was the basis of economic capitalism for hundreds of years until the repeal of the Gold standard, which led to the expansion of a flat currency system in which paper money doesn’t have an implied backing with any physical form of monetization. AU is the code for Gold on the Periodic table of elements, and the price above is Gold quoted in US Dollars, which is the common yardstick for measuring the value of Gold across the world. “That’s likely to continue generating market choppiness until investors are confident that the economy is cooling but not collapsing and the rate shock is over,” Rose said.
U.S. dollar rises after jobs data
The GDP numbers follow business activity data earlier this week that highlighted the strength of the U.S. economy relative to the United Kingdom and the European Union. In an otherwise lightweight economic calendar, the dollar is waiting patiently to hear the Fed chair’s remarks on interest rates.In an otherwise lightweight economic calendar, the dollar is waiting patiently to hear the Fed chair’s remarks on interest rates. Investors and traders are keenly observing the market changes, anticipating an imminent ETF approval, especially after the SEC’s decision not to appeal the court’s ruling that necessitated the review of Grayscale Investment’s ETF application.
The Bank of Japan (BOJ) kicked off its two-day monetary policy meeting on Monday, leading a week that will also see interest rate decisions from the U.S. The Fed boss pledged to keep rates steady for the foreseeable future. The euro found support at $1.0540.The Fed boss pledged to keep rates steady for the foreseeable future.
