Market Outlook

“High expectations towards prolonged interest rate hike push US dollar upwards.” US dollar edges higher against other major currencies following high expectations for more interest rate hike due to stubbornly high inflation. Last week, Federal Reserve meeting minutes revealed that officials are concerned on inflation level which remains high. They conclude that a prolonged interest rate

“New trade deal for Northern Ireland skims out impasses which lasted for several years between UK and EU.” Pound sterling rebounds from prior low levels after UK and EU struck a new trade deal with European Union post Brexit. The new trade deal is known as Windsor Framework, which encompasses new trade rules for Northern Ireland. The deal was monumental as both parties were in dispute

“Fed preferred inflation data stoked higher expectation for prolonged rate hike in the long run.” US dollar held on to its gains near seven-week high as Fed preferred inflation data reinforced the expectations for more rate hikes. According to reports, Personal Consumption Expenditure (PCE) price index rose 0.6% last month, significantly higher than previous month of 0.2%. The uptick in

“Investors expects Federal Reserve to raise interest rates until inflation achieved the target of 2%.” US dollar cling onto its gains, spurred by Federal Reserve’s latest meeting minutes and strong employment data from the United States. In terms of meeting minutes, Fed officials suggests to prolong the period of rate hikes as US inflation remains stubbornly high. They also noted that

“Fed officials are seeking controlled rate hike for an extended period in order to achieve their inflation target.” US dollar climbed further up on Wednesday after Federal Reserve latest meeting minutes shows possibility for a longer period of rate hikes. From the minutes, several officials suggested that it would be wise to raise interest rates at a restrictive manner to assess the

“The bullion stuck in a tight range while the market waits for more signals from Fed meeting minutes.” Gold prices remain pressured at six-week low on Wednesday while market participants remain cautious ahead of Federal Reserve’s meeting minutes. The safe-haven asset trades in a sideways fashion since last week as investors assess the possibility of Fed in changing their policy guidance

“Powell did not switch to hawkish stance despite bullish Nonfarm Payrolls report.” Gold price rebounds from lower levels while US dollar fell from one-month high after US Federal Reserve Chair Jerome Powell repeats disinflation comment. During question-and-answer session at Economic Club of Washington, Powell noted that their goal is to bring inflation back to 2%, which would be a

“Positive data rise expectation for a longer period of high interest rates.” US dollar held on to its gains against a basket of six major currencies following upbeat economic data from the region. Both Producer Price Index and Jobless Claims fared better than expected, cementing expectations that Federal Reserve may have to increase interest rates for a longer period of time. Moreover,

“Greenback back in demand as recent data spur speculation towards the Fed.” US dollar stabilizes around six-week high as US Treasury bond yield top multi-day high following bullish US data which propel hawkish bets upon Federal Reserve. Yesterday, Core Retail Sales came in at 2.3% for last month, significantly higher than forecast of 0.8%. The data shows resilient in the consumer market

“CPI lifted the US dollar ever so slightly. All eyes on Fed remarks and other economic data.” US dollar was traded marginally higher on Wednesday as recent inflation data from January shows slight increase in consumer goods prices. The data, which came in at 0.5% for last month was boosted largely due to rising gasoline prices. However, sentiment among market participants remains divided