Gold extends rally near $2,360 amid geopolitical risks
The price of gold (XAUUSD) rose to ,360 due to rising geopolitical tensions in the Middle East, boosting safe-haven flows.
us inflation
USD recovers after early sell-off on Israeli attack reports
The Euro-dollar currency pair is trading in the lower 1.0600s on Friday after news reports of an escalation in the Middle East conflict prompted a flight to safe-haven USD, resulting in a decline in EURUSD.
Euro under pressure as ECB eyes rate cut
The Euro is trading close to a five-month low against the dollar, with market expectations for the ECB to begin reducing interest rates increasing.
Geopolitics, Fed and Chinese GDP
Geopolitical tensions are causing caution among investors, with concerns about potential retaliation from Israel against Iran. The Nasdaq index fell below its 50-day SMA, indicating a possible sell-off. US economic data, including industrial production and Fed Chairman Jerome Powell’s speech, are being closely watched. Oil prices are influenced by tensions in the Middle East, with the possibility of Brent crude reaching 0. Gold prices are anchored by inflation expectations and geopolitical tensions, with potential for further increases. China’s strong GDP growth is seen as positive for gold demand. Powell’s speech and potential oil price increases could impact inflation. Gold prices are expected to continue rising, potentially reaching ,500.
Former Labor minister calls for major tax shake-up
David Bradbury, the OECD’s departing tax executive, believes Australia needs a new review of tax and spending across the federation to implement difficult reforms.
ECB, ’s confidence in fight against inflation growing, Villeroy says
The European Central Bank (ECB) is increasingly confident in winning the fight against inflation, making an interest rate cut in June very likely.
Yen declines after weak US data, buyers take profits
The USDJPY pair was trading at 152.95 with a modest loss of 0.17% late Friday. Despite a drop in consumer confidence in the US, the Greenback is set to close a winning week due to hot inflation data reported. The US Bureau of Labor Statistics revealed a rise in inflation, with the Consumer Price Index rising to 3.5% year-over-year in March. Hot inflation figures fueled hawkish bets on the Federal Reserve and US Treasury yields, benefiting the USD during the week. The USD may see further upside if data validates bets, with Retail Sales figures from March set to be released next Monday. On the technical analysis side, the USDJPY pair shows a sustained trend in positive territory on the Relative Strength Index (RSI) and a bullish posture above the 20-day, 100-day, and 200-day Simple Moving Average (SMA).
WTI lacks direction, consolidates below $86.00
The text discusses the current struggles of West Texas Intermediate (WTI) crude oil prices, which are being supported by concerns about the Middle East crisis. Despite potential supply risks, a substantial rise in US crude inventories and signs of cooling fuel demand are capping the upside for oil prices. Additionally, hotter US consumer inflation figures have led investors to push back expectations for an interest rate cut by the Federal Reserve. Traders are now looking to US economic data and speeches by FOMC members to drive USD demand and influence crude oil prices.
Rate cut in Q3, after hot US CPI, says deVere boss
The CEO of deVere Group predicts that the Federal Reserve will only cut rates once this year, with the next cut not expected until January 2025.
Calm before the CPI storm
Investors and traders are cautious ahead of the release of US inflation data, which is expected to rise to 3.4%. If the data exceeds expectations, there is a possibility of a significant market sell-off.