EUR/USD 1.16054
-0.020%
Gold 4328.39
-0.064%
Oil 74.838
-1.277%
USD/JPY 160.292
-0.096%
GBP/USD 1.34119
-0.105%
GBP/JPY 214.987
-0.199%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
June 17th - LBBW analysts noted in a report that investors will be paying particular attention to Federal Reserve Chairman Kevin Warshs first press conference on Wednesday. As this is the new chairmans debut, "his communication will be the focus of market participants," the analysts said, adding, "He is expected to adopt a more restrained communication strategy." The Fed is expected to keep interest rates unchanged at 3.50% to 3.75% this month.1. UBS: There is still insufficient confidence in Warshs policy stance, and his monetary policy response remains uncertain. Whether Warsh is hawkish or dovish, both could pose market pricing risks. 2. ANZ: Warsh has demonstrated a strong willingness to reform, and his reform ideas are expected to be revealed at the press conference. More detailed information may be provided in his opening speech at the Jackson Hole symposium in August. 3. Bank of America: Warsh is expected to be dovish in his press conference. We believe he will say that the Iranian conflict does not affect underlying inflation (it only has a one-off impact on price levels), therefore the Fed should "ignore" it, especially after recent news of a solution to the conflict. 4. Capital Economics: He may be asked about his views on interest rates. The risk to the market is that Warshs remarks may be more hawkish than expected—either due to a communication mishap or simply because his current stance is not as dovish as it was when he was vying for Trumps presidential nomination. 5. Yale University: If Warsh relies too heavily on soft logic such as "AI deflation" while ignoring hard data, the Fed may repeat the mistake of "temporary inflation." 6. Nordea Bank: Warsh is expected to lean towards a more neutral or even slightly hawkish stance to enhance his credibility. Any changes in his communication will be indicative rather than immediate. 7. BNY Mellon: Warsh has consistently been critical of forward guidance and may use this press conference (or limit the number of press conferences) to indicate how communication policy will change during his tenure. 8. MFS Investment Management: Given Warshs views on technological productivity, he may make dovish remarks. However, this is unlikely, as such comments at this time would damage his hawkish image.On Wednesday, June 17, the German DAX 30 index opened down 98.71 points, or 0.40%, at 24,816.05; the UK FTSE 100 index opened down 1.78 points, or 0.02%, at 10,492.43; and the French CAC 40 index opened down 18.68 points, or 0.22%, at 8,428.59. The Stoxx 50 index opened down 5.52 points, or 0.09%, at 6251.90 on Wednesday, June 17; the Spanish IBEX 35 index opened down 0.89 points, or 0.00%, at 19162.71 on Wednesday, June 17; and the Italian FTSE MIB index opened down 21.06 points, or 0.04%, at 52411.50 on Wednesday, June 17.ECB Governing Council member Simkus: Controlling inflation expectations is very important.June 17 – Mobileye (MBLY.O) announced today plans to further expand its robotaxi business, extending from providing autonomous driving technology to operating its own autonomous ride-hailing services. The new project is planned to launch in a U.S. city in 2027, marking a significant upgrade to Mobileyes strategy.

Gold Price Prediction: XAU / USD Bulls encounter resistance, while bears eye trendline support

Alina Haynes

Mar 13, 2023 11:24

截屏2022-06-07 下午5.15.57.png 

 

Gold price was approximately 0.5% higher at the start of the week following a 2% increase in the first hour of Tokyo trade on Friday, and as US authorities announced plans to limit the repercussions from the failure of Silicon Valley Bank (SVB). Gold is currently trading at $1,878 and ranges from $1,867.03 to $1,894.68 at the time of writing.

 

In a joint statement, the US Treasury and Federal Reserve announced a number of measures to stabilize the banking system and announced that depositors at SVB would have access to their funds on Monday. The Biden administration on Sunday guaranteed that customers of the failed Silicon Valley Bank will have full access to their funds beginning Monday. Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, and Federal Deposit Insurance Corporation Chairman Martin J. Gruenberg stated in a joint statement on Sunday that the FDIC will compensate SVB and Signature's customers in full.

 

Investors hypothesized that the Federal Reserve would be reluctant to upset the boat by increasing interest rates by a massive 50 basis points this month, resulting in a weaker US Dollar. Fed fund futures surged in early trading, implying only a 17% chance of a half-point hike, down from 70% before the SVB announcement last week. The apex for rates was 5.14%, down from 5.69% last Wednesday, and markets were even pricing in rate cuts by the end of the year. In a move that has benefited the price of gold, yields on two-year Treasuries fell to 4.445%, well below last week's peak of 5.08%.

 

In the meantime, speculators will focus on the US Consumer Price Index data that will be released on Tuesday. Even though the financial system is under stress, there is the possibility of a more aggressive Federal Reserve if the data comes in strong. ´´Core prices likely gained momentum in February with the index increasing a robust 0.5% MoM, as we look for the recent substantial relief from goods deflation to start normalizing,´´ analysts at TD Securities explained. "Shelter inflation is likely to remain the most significant wild card, while a decline in petroleum and food prices will likely reduce non-core CPI inflation. Our m/m forecasts imply total/core price growth of 6.1%/5.5% YoY.

Suggestion