Gold starts week with yet another record high
Gold hit a new all-time high above ,350 at the weekly opening after gaining over 4% in the previous week, reaching a record high of ,330 on Friday.
Dollar Index
Dollar rebounds as focus shifts to March NFP
The US Dollar Index (DXY) continued to push lower on Thursday due to a negative shift in risk sentiment.
Soft CPI weakens Swiss Franc
The Swiss Franc strengthened as softer-than-expected Consumer Price Index (CPI) data for March boosted expectations of one more interest rate cut by the Swiss National Bank.
Silver rises to $25.80 as US$ slips on steady job openings
The price of silver jumped to .80 after steady JOLTS job opening figures were reported by the United States Bureau of Labor Statistics.
Euro pressure as ECB officials hint at rate cut in June
The EURUSD pair maintained its position around 1.0770 on Friday, facing downward pressure due to the European Central Bank officials suggesting a probable interest rate cut in June. Weaker-than-expected retail sales data from Germany also contributed to the Euro’s decline. Meanwhile, the US Dollar Index (DXY) strengthened, nearing 104.60, driven by annualised economic expansion in the United States and hawkish statements from a Federal Reserve official.
Sterling hovers near one-month low on rate cut bets
– The pound was stable on Monday, close to its lowest level in a month, due to increased bets that the Bank of England (BoE) will cut interest rates in June.
– Sterling was flat at .2608, near the one-month low of .2576 from the previous Friday.
– The euro was slightly changed against the pound at 85.79 pence, down from a two-month high of 86.02 pence on Friday.
– The pound fell approximately 1% against the dollar last week after the BoE maintained interest rates at 5.25% and Governor Bailey indicated that inflation is trending towards allowing for interest rate cuts.
– Bailey’s comments to the Financial Times about rate cuts being “in play” this year further decreased the pound’s value.
– Market traders now estimate a roughly 75% chance of a BoE rate cut by June, an increase from about 35% at the beginning of the previous week, influenced by data showing faster-than-expected inflation decline.
– Chris Turner from ING suggested that the BoE’s dovish communications could lead to the euro rising to 87 pence against the pound in the next month.
– In contrast, stronger-than-expected U.S. economic and inflation data has led to reduced expectations for a Federal Reserve rate cut in June, enhancing the appeal of American bonds and supporting the dollar.
– The dollar index was approximately flat at 104.38 on Monday, after a 1% increase the previous week.
The Fed, the whole Fed and nothing but the Fed
– The USD Index (DXY) reached three-week highs past the 104.00 mark on Tuesday, despite a decline in US yields.
– The Federal Reserve’s interest rate decision and the FOMC Economic Projections, along with Chair Jerome Powell’s press conference, are scheduled for Wednesday.
– The EURUSD pair fell to multi-week lows near the 1.0830 region, testing the critical 200-day SMA.
– ECB’s Christiane Lagarde is set to speak on Wednesday, and the European Commission will release its flash Consumer Confidence gauge.
– The GBPUSD pair moved beyond 1.2700 towards the end of the NA session on Tuesday after reversing an earlier pullback to the 1.2670 zone.
– The UK will report the Inflation Rate on March 20.
– The USDJPY pair approached the 151.00 mark, near 2024 highs, due to increased selling pressure on the yen following the BoJ rate hike.
– The AUDUSD pair approached the 0.6500 support level for the fourth consecutive session, influenced by a stronger USD and the RBA’s dovish stance. The RBA’s Consumer Inflation Expectations are due on March 20.
– WTI oil prices surpassed .00 per barrel, reaching four-month highs, driven by geopolitical factors and anticipated stronger demand.
– Gold prices saw modest losses around the ,150 per troy ounce zone, affected by the stronger Dollar and lower US yields.
– Silver prices dropped for the second consecutive session after reaching highs near .50 per ounce on Friday.