Trusted by over 15 Million Traders
The Most Awarded Broker
for a Reason
CATEGORIES
News
- 【XM Forex】--GBP/JPY Forecast: Rallies but Faces Key Resistance
- 【XM Forex】--AUD/USD Forex Signal: Aussie Retreats Below Key Support Level
- 【XM Decision Analysis】--AUD/USD Forex Signal: Falling Wedge Points to a Rebound
- 【XM Market Review】--AUD/USD Forecast: Struggles Against Stronger USD
- 【XM Market Analysis】--USD/TRY Forecast: Turkish Lira Hits Record Lows
market analysis
Fed's interest rate cut bets to support gold prices, Hamas says it has not received new ceasefire proposal
Wonderful introduction:
Without the depth of the blue sky, there can be the elegance of white clouds; without the magnificence of the sea, there can be the elegance of the stream; without the fragrance of the wilderness, there can be the emerald green of the grass. There is no seat for bystanders in life, we can always find our own position, our own light source, and our own voice.
Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Decision Analysis]: The Federal Reserve's interest rate cut bets to support gold prices, and Hamas said it has not received a new ceasefire proposal yet." Hope it will be helpful to you! The original content is as follows:
On September 29, spot gold was trading around $3,793/ounce in the Asian market on Monday, and gold prices hit a record $3,790.97/ounce last week. U.S. economic data strengthened the Federal Reserve's bet that it may continue to cut interest rates later this year.
The dollar fell against major currencies last Friday, but the weekly line continued to rise for the second consecutive week, after data released continued to show that the U.S. economy is resilient, which could www.xmtraders.complicate the Fed's efforts to cut interest rates.
Data from the U.S. Department of www.xmtraders.commerce shows that the inflation indicator favored by the Federal Reserve rose by 0.3% month-on-month in August, in line with expectations. "I think it's clear that stronger economic data has hit the Fed's expectations of interest rate cuts, which somewhat narrows the interest rate spread with other countries and drives the dollar up," said John Velis, a BNY American Forex and Macro strategist. "We still think the hedging behavior is quite strong, so we're still seeing a large amount of forward selling of the dollar, even if U.S. assets, especially U.S. stocks, continue to be affected by overseas factors, although to some extent this also fell a bit second last week. But I think it's clear that the U.S. dollar will move with Fed expectations in the short term."
The U.S. dollar index fell 0.33% to 98.17, but rose for the second consecutive week. Richmond Federal Reserve Chairman Barkin said on Friday that he believes the risks of a sharp rise in unemployment or inflation are limited, allowing the Fed to balance its two goals as further rate cuts are discussed.
Federal Vice Chairman of Regulation said,With a 2% inflation target approaching, she believes that it is necessary to cut interest rates decisively to avoid increasing problems in the job market. The two are the latest decision makers to www.xmtraders.comment on the Fed's decision to start cutting interest rates.
According to CME's FedWatch tool, traders believe the probability of the Fed cutting interest rates by 25 basis points in the next meeting is 89.8%, down from nearly 92% a week ago.
Bank U.S. analysts wrote in an investor report that the dollar has steadily returned to the range, but based on the position situation, the risk of short positions being closed has been reduced, and a key employment report is about to be released. There are few new narratives to support other G10 currencies in the short term.
Asian market
Institutional analysis pointed out that the market generally expects the RBA to keep interest rates unchanged at its policy meeting on Tuesday. Currently, GDP growth is recovering slowly, and the labor market remains a certain level of tension. RBA Chairman Brock is likely to be vigilant about the continued existence of inflation risks at the press conference, and also implied that the current policy setting is basically unrestrictive. This means that this round of easing cycle is gradually www.xmtraders.coming to an end.
European Market
The latest survey by the European Central Bank shows that eurozone households raised inflation expectations in August. The median expectation for the next 12 months rose to 2.8% from 2.6% in July, while the five-year forecast climbed to 2.2% from 2.1%, the highest level since August 2022. The three-year forecast is stable at 2.5%.
At the same time, the growth outlook remains bleak, with respondents predicting output to shrink by -1.2% in the next 12 months. Worries about employment have also risen slightly, with unemployment expectations rising from 10.6% to 10.7%.
The survey highlights the lingering inflation mentality in households, although the economic outlook remains fragile. For the ECB, if growth continues to stagnate, medium-term price expectations continue to approach or above the target, which may limit the room for further easing.
U.S. market
Canada's GDP grew by 0.2% month-on-month in July, exceeding expectations of 0.1%, the first increase in four months. The rebound was driven mainly by the www.xmtraders.commodity production industry, which rose 0.6% month-on-month after three consecutive months of contraction, with each industry recording an increase.
The output of the service industry is even more sluggish, with only 0.1% month-on-month increase due to the lack of contribution of wholesale trade and real estate, while retail trade declined. Overall, only 11 out of 20 industrial sectors achieved growth.
Looking forward, pre-estimates show that GDP remained flat in August, with growth in wholesale and retail industries offset by declines in resource extraction, manufacturing and transportation industries.
The US August inflation data basically meets expectations. Overall PCE increased by 2.7% year-on-year, slightly higher than 2.6% in July. Core PCE stabilized at 2.9% year-on-year. This month, the overall and core rose by 0.3% and 0.2% month-on-month respectively, both in line with market expectations.
In addition to inflation, demand also shows greater momentum. Personal income increased by 0.4% month-on-month, higher than expected by 0.3%. Personal expenditure increased by 0.6% month-on-month, also exceeding the expected 0.5%.
For the Fed, these data reinforce the reasons for continuing but modest easing. Inflation progress remains gradual, while a stronger demand suggests that the economy is not at risk of stagnation.
The above content is all about "[XM Foreign Exchange Decision Analysis]: The Federal Reserve's interest rate cut bets to increase its investment to support gold prices, Hamas said it has not received a new ceasefire proposal yet". It was carefully www.xmtraders.compiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading! Thanks for the support!
Due to the author's limited ability and time constraints, some content in the article still needs to be discussed and studied in depth. Therefore, in the future, the author will conduct extended research and discussion on the following issues:
Disclaimers: XM Group only provides execution services and access permissions for online trading platforms, and allows individuals to view and/or use the website or the content provided on the website, but has no intention of making any changes or extensions, nor will it change or extend its services and access permissions. All access and usage permissions will be subject to the following terms and conditions: (i) Terms and conditions; (ii) Risk warning; And (iii) a complete disclaimer. Please note that all information provided on the website is for general informational purposes only. In addition, the content of all XM online trading platforms does not constitute, and cannot be used for any unauthorized financial market trading invitations and/or invitations. Financial market transactions pose significant risks to your investment capital.
All materials published on online trading platforms are only intended for educational/informational purposes and do not include or should be considered for financial, investment tax, or trading related consulting and advice, or transaction price records, or any financial product or non invitation related trading offers or invitations.
All content provided by XM and third-party suppliers on this website, including opinions, news, research, analysis, prices, other information, and third-party website links, remains unchanged and is provided as general market commentary rather than investment advice. All materials published on online trading platforms are only for educational/informational purposes and do not include or should be considered as applicable to financial, investment tax, or trading related advice and recommendations, or transaction price records, or any financial product or non invitation related financial offers or invitations. Please ensure that you have read and fully understood the information on XM's non independent investment research tips and risk warnings. For more details, please click here