Dollar index (DXY00) rose 0.50%on Thursday. The dollar has moved up higher to the positive carriageover from Wednesday on Thursday when Fed Chair Powell said that high goods prices are feeding through inflation and FOMC hopes that inflation will continue to continue construction in the next year, which can limit how much Fed can cut interest rates. The dollar was added to its profit on Thursday after T-Note yields when American weekly unemployed claims fell more than expected, and SEP Philadelphia Fed Business Outlook Survey Fed Policy increased 8 months high, Hawkish factors increased more than expected.
The dollar is being reduced by concerns over Fed independence, which can motivate foreign investors to dump the dollar assets as President Trump has attempted to fire Fed Governor Cook, and to be a fed governor with the intention of Stephen Miran, while to handle his white house job in the council of technically economic advisors.
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The US weekly initial unemployment claims fell from 33,000 to 231,000, showing a strong labor market compared to the expectations of 240,000.
The US Sep Philadelphia Fed Business Outlook survey rose +23.5 to an 8 -month high of 23.2, stronger than expectations of 1.7.
The leading indicators of the US Aug have fallen -0.5% m/m fall, -0.2% m/m expectations and the biggest decline in four months.
After Wednesday -25 bp rate cuts, the markets are now pricing at 93% likely to cut -25 BP rate cut at the next FOMC meeting on 28–29 October.
Eur/USD (^Eurusd) fell on -0.20%on Thursday. The euro was under pressure on Thursday with a strong dollar. In addition, fiscal concerns are reducing the euros after the German government said on Thursday that it will borrow about 20% more than planned in Q4 to help increase infrastructure and increase on armed forces.
Damage in euro lies due to central bank deviation, as the markets eliminate the ECB to a large extent with their rate-cut cycle, while the Fed is expected to cut rates almost twice by the end of this year.
The German finance agency, which manages the federal government loan, said it plans to raise 90.5 billion euros ($ 107 billion) in Q4, which is 15 billion euros higher than the estimated agency in December.
At the October 30 policy meeting, 2% of the probability of cutting -25 BP rate cut by ECB is pricing.
USD/JPY (^usdjpy) increased 0.59%on Thursday. Yen was under pressure on Thursday and fell to a 1 -week low of a week due to a strong dollar. In addition, Thursday’s rally in Nikkei Stock Index has reduced a new record high-level demand for Yen at a high level. On Thursday, the loss in the yen increased after the stronger of US economic news.
Yen has received some carriageover support since Tuesday, when Japanese Agriculture Minister Coizhumi said that he would participate in the party leadership race of the ruling Liberal Democratic Party. Coizhumi is seen as a hawkish on fiscal policy and is less likely to try to affect the interest rate of BOJ.
December Gold (GCZ25) closed -39.50 (-1.06%) on Thursday, and December Silver (SIZ25) -0.034 (-08%) was closed. Precious metal prices decreased on Thursday and were under a strong dollar pressure. In addition, high global government bond yields reduce the prices of precious metals on Thursday. In addition, Thursday’s rally in S&P500 for a new record high Karbed safe-heven demand for precious metals. Better US economic news on weekly unemployed claims and SEP Philadelphia Fed Business Outlook Survey was Hawkish for Fed Policy and weighed on gold prices, but also indicates economic strength and is positive for demand and silver prices.
From Wednesday, gold prices also had a negative carriageover, when Fed Chair Powell said high goods prices are feeding through inflation, and FOMC hopes that inflation will continue to construct in the next year, which can limit how much Fed can cut interest rates.
The FOMC on Wednesday has support for precious metals after a cut of -25 bp and has been indicated by a cut in -50 bp rate by the end of the year. On Tuesday, the nearest-top (U25) Gold posted a high time of $ 3,698.60 an ounce, and the nearest-Bhavishya (U25) Rajat posted at a 14-year high. Gold prices continued to get safe support from US tariff and uncertainty tied to the attacks of President Trump, as they attempted to fire Fed Governor Cook, and Stephen Miran intended to become a fed governor with the intention of Miran, while technically holding his white house job in the council of economic advisors. Geophysical risk and political uncertainty in France and Japan are also demanding gold as a safe property. French Prime Minister Bairo resigned last week after losing the trust vote in Parliament. In addition, Japanese Prime Minister Ishiba resigned after two election results last week, which snatched the ruling Liberal Democratic Party of Japan for its prominences in both houses of Parliament, which is seen as paving a way to a more expanding fiscal policy.
Precious metal prices continue to get support from purchasing precious metal ETF funds. Gold holding at ETF reached a height of 2.25 years on Tuesday, and Silver Holdings in ETFS reached a 3 -year high on Wednesday.
On the date of publication, Rich Escpland did not have the positions mentioned in any securities mentioned in this article (either direct or indirectly). All information and data in this article is only for informative purposes. For more information, please see the Barkart Disclosure Policy here.
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