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Thursday, 4 May 2023
Dow Jones, S&P 500, Nasdaq 100 Sink after Fed, Powell, PacWest Woes Crush Sentiment
Gold Futures Settle Higher As Dollar Eases Ahead Of Fed Announcement
Gold prices climbed higher on Wednesday as the dollar shed ground against its major counterparts amid speculation the Federal Reserve might signal a pause in policy tightening sometime soon.
The Fed is widely expected to raise interest rates by 25 basis points today, but analysts expect a rate cut sometime later this year.
The dollar index dropped to 101.36 around late morning and is currently at 101.41, down more than 0.5% from Tuesday's close.
Gold futures for June ended higher by $13.70 or about 0.7% at $2,037.00 an ounce.
Silver futures for July ended up $0.062 at $25.681 an ounce, while Copper futures for July settled at $3.8450 an ounce, down $0.0175 from the previous close.
CME Group's FedWatch Tool is currently indicating an 85.4 percent chance the Fed will raise rates by 25 basis points and an 82.39 percent chance the central bank will subsequently leave rates unchanged in June.
"The Federal Reserve will announce its latest interest rate decision later today and investors will be hanging on their every word in light of recent banking sector instability," said Craig Erlam, Senior Market Analyst at OANDA.
A report from payroll processor ADP showed private sector employment in the U.S. increased by much more than expected in the month of April.
ADP said private sector employment surged by 296,000 jobs in April after climbing by a revised 142,000 jobs in March. Economists had expected private sector employment to advance by 148,000 jobs compared to the addition of 145,000 jobs originally reported for the previous month.
A separate report released by the Institute for Supply Management showed U.S. service sector activity grew at a slightly faster rate in the month of April.
The ISM said its services PMI crept up to 51.9 in April from 51.2 in March, with a reading above 50 indicating growth in the sector. Economists had expected the index to inch up to 51.8.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2211473/
Wednesday, 3 May 2023
*New Zealand Unemployment Rate 3.4% In Q1; Employment +0.8% On Quarter
New Zealand Unemployment Rate 3.4% In Q1; Employment +0.8% On Quarter
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2211408/
New Zealand Unemployment Data Due On Wednesday
New Zealand will on Wednesday release Q1 figures for unemployment, highlighting a modest day for Asia-Pacific economic activity.
The jobless rate is expected to tick up to 3.5 percent from 3.4 percent in the previous quarter, while the employment change is expected to add 0.4 percent after gaining 0.2 percent in the three months prior. The participation rate is called steady at 71.7 percent.
Australia will provide preliminary March numbers for retail sales, with forecasts calling for an increase of 0.3 percent on month - accelerating from 0.2 percent in February.
The central bank in Malaysia will wrap up its monetary policy meeting and then announce its decision on interest rates; the central bank is expected to keep its benchmark lending rate unchanged at 2.75 percent.
Thailand will see April figures for consumer prices, with forecasts suggesting an annual increase of 2.7 percent for overall inflation and 1.7 percent for core CPI.
Finally, the markets in China and Japan are closed on Wednesday, for Labor Day and Showa Day, respectively.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2211407/
Gold Price Holds the High Ground as Treasury Yields Retreat. Where to for XAU/USD?
Dollar Turns Weak Against Major Counterparts Ahead Of Fed Policy
The U.S. dollar drifted lower on Tuesday, losing ground against most of its major counterparts, as traders awaited the monetary policy announcement from the Federal Reserve.
Traders also digested the latest batch of economic data.
The Fed widely expected to raise interest rates by another 25 basis points. The focus will be on the accompanying statement for clues about the outlook for rates.
CME Group's FedWatch Tool is currently indicating an 87.5% chance the Fed will raise rates by 25 basis points and a 72.9% chance the central bank will subsequently leave rates unchanged in June.
Meanwhile, U.S. Treasury Secretary Janet Yellen has warned the Treasury might run out of money to cover obligations as soon as June 1.
In economic releases, a report released by the Labor Department showed job openings in the U.S. fell by more than expected in the month of March.
The Labor Department said job openings decreased to 9.590 million in March from an upwardly revised 9.974 million in February. With the drop, job openings fell to their lowest level since April 2021.
Economists had expected job openings to decline to 9.775 million from the 9.931 million originally reported for the previous month.
The Commerce Department released a report showed factory orders advanced by 0.9% in March after slumping by a revised 1.1% in February. Economists had expected factory orders to climb by 0.8% compared to the 0.7% decrease originally reported for the previous month.
The dollar index, which climbed to 102.40, dropped to 101.88, losing more than 0.25%.
Against the Euro, the dollar weakened to 1.1003 from 1.0976.
The dollar is weak against Pound Sterling at 1.2471, about 0.2% down from Monday's close of 1.2497.
Against the Japanese currency, the dollar has eased to 136.54 yen from 137.48 yen
The dollar is weak at 0.6665 against the Aussie. The monetary board of the Reserve Bank of Australia decided to hike the cash rate target by 25 basis points to 3.85 percent. Markets widely expected the apex bank to leave the rate unchanged today.
Against Swiss franc, the dollar weakened to CHF 0.8931 from CHF 0.8955. The dollar is up against loonie at C$1.3626 as oil prices tumbled on concerns about outlook for energy demand.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2211406/
Treasuries Show Significant Rebound Amid Sell-Off On Wall Street
Following the steep drop seen in the previous session, treasuries showed a significant move back to the upside during trading on Tuesday.
Bond prices moved sharply higher in morning trading and remained firmly positive throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 13.5 basis points to 3.439 percent.
With the notable decrease on the day, the ten-year yield more than offset the 12.2 basis point jump seen on Monday.
The rebound by treasuries came amid a sell-off on Wall Street, with stocks moved sharply lower after ending the previous session little changed.
Some traders looked to cash in on recent strength among stocks ahead of the Federal Reserve's monetary policy announcement on Wednesday.
With the Fed widely expected to raise interest rates by another 25 basis points, traders will pay close attention to the accompanying statement for clues about the outlook for rates.
CME Group's FedWatch Tool is currently indicating an 85.0 percent chance the Fed will raise rates by 25 basis points and an 83.5 percent chance the central bank will subsequently leave rates unchanged in June.
In U.S. economic news, the Commerce Department released a report showing new orders for U.S. manufactured goods increased by slightly more than expected in March.
The Commerce Department said factory orders advanced by 0.9 percent in March after slumping by a revised 1.1 percent in February.
Economists had expected factory orders to climb by 0.8 percent compared to the 0.7 percent decrease originally reported for the previous month.
A separate report released by the Labor Department showed job openings in the U.S. fell by more than expected in the month of March.
The Labor Department said job openings decreased to 9.590 million in March from an upwardly revised 9.974 million in February. With the drop, job openings fell to their lowest level since April 2021.
Economists had expected job openings to decline to 9.775 million from the 9.931 million originally reported for the previous month.
Trading on Wednesday is likely to be driven by reaction to the Fed's monetary policy announcement, although reports on private sector employment and service sector activity may attract attention earlier in the day.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2211404/