As investors turn their attention towards the potential for Fed rate cuts in 2024, the US dollar is facing a critical week. The upcoming FOMC Meeting Minutes on August 21 will be closely scrutinized, with a focus on the sentiment towards the US economy, the labor market, and the Fed rate path. These factors are
Forecasts
The Dollar Index (DXY) is currently at $102.911, showing a slight decrease of 0.06% for the day. The index recently retraced to the 38.2% Fibonacci level at $103.039, where a bearish engulfing candle appeared on the 4-hour chart. This indicates the possibility of a further downward correction. The 50-day and 200-day EMAs, located at $103.027
The recent US CPI Report has sparked discussions among experts regarding the Fed rate path and its implications on the forex market. According to Arch Capital Global Chief Economist Parker Ross, core services inflation saw a notable increase in July, catching the attention of the Federal Reserve. The CPI Report has shifted the focus towards
The recent unexpected decision by the Bank of Japan to raise interest rates to around 0.25% has sent shockwaves through global markets. This move, combined with the announcement of a cut to Japanese Government Bond purchases, has raised concerns about the future of the Yen carry trade and its implications for the USD/JPY exchange rate.
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Silver is currently at a crucial point where it could potentially experience a significant rebound. However, there are several market risks that could impede this expected rally. One primary risk is economic uncertainty. If global economic growth exceeds expectations or if sudden financial instability occurs, the demand dynamics for silver could be altered, leading to
It is important to be critical of the information provided on financial websites. Many of these websites, including FX Empire, offer general news, analysis, and opinions that are intended for educational and research purposes only. However, it is crucial to recognize that this content may not necessarily be accurate or reliable. In fact, some of
It is crucial for individuals to conduct their own due diligence before making any financial decisions. The information provided on websites such as FX Empire should be used for educational and research purposes only. It is not a personalized recommendation or advice, and individuals should not rely solely on this information when making investment decisions.
The US equity markets experienced a significant turnaround on August 8th, with the Nasdaq Composite Index, Dow, and S&P 500 all posting gains. This was in response to the decrease in initial claims for unemployment benefits, which dropped to 233,000. This data helped allay concerns about the weakening US labor market, as claims remained close
When it comes to making financial decisions, it is crucial to conduct your own due diligence. The information provided on websites, including general news, analysis, and opinions, should be taken as educational and research purposes only. It is not a recommendation or advice to take any action, such as making investments or purchasing products. Your
Cathie Wood, the Founder, CEO, and CIO of ARK Invest, recently made a compelling argument regarding the relationship between Treasury yields and the Fed Funds Rate. She suggested that based on the metal-to-gold ratio, the 10-year Treasury bond yield should be around 2% today, significantly lower than its current rate of 3.8%. This raises the
The relationship between interest rates and currency pairs is not always straightforward. While traditionally, higher rates on a currency should strengthen it, the actual market response can vary. Take, for example, the USD/YEN pair, which rallied after a rate hike on the yen. This unexpected outcome raises questions about how future rate hikes will impact