Forecasts

When considering the influence of retail sales figures on the Federal Reserve rate path, it is crucial to understand that weaker-than-expected retail sales data could lead to a downward revision of the inflation outlook. This, in turn, would diminish the likelihood of a Federal Reserve rate hike in the near future. Economists are predicting a
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The market reaction to economic data, such as the Michigan Inflation Expectation numbers, can have a significant impact on exchange rates. In the case of the USD/JPY pair, an unexpected increase in the Michigan Inflation Expectations Index led to gains for the US dollar against the Japanese yen. This demonstrates how sensitive the market can
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The year 2024 has seen a remarkable strength in gold prices, defying expectations influenced by a strong U.S. dollar and hawkish sentiments from the Federal Reserve. While these factors typically exert downward pressure on gold, the sustained performance of the precious metal indicates a more complex picture. The growth in global demand for gold has
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The recent downgrade in inflation forecasts has added a dovish tilt to the economic outlook. The central bank’s projections show a slower increase in inflation levels than previously expected. This change has implications for monetary policy decisions and market expectations. With lower inflation forecasts, there could be increased pressure for further stimulus measures to boost
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The analysis of the monthly chart indicates that while there may be arguments for an uptrend, the high at $1.3142 needs to be surpassed for a long-term uptrend confirmation. The next layer of resistance at $1.3111 is also a significant level to watch. However, the support level at $1.2173 is seen as a potential downside
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The recent increase in gold prices can be attributed to disappointing U.S. employment figures that have heightened expectations for Federal Reserve interest rate cuts. This surge has resulted in gold reaching a two-week high, with a weekly increase of over 3%. Market sentiment is further bolstered by the possibility of synchronized rate cuts from major
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Investors must not only focus on the data but also keep a close eye on the comments made by FOMC members. Michelle Bowman, Austan Goolsbee, and Michael Barr are scheduled to speak, and their remarks on inflation and potential interest rate cuts can significantly impact the AUD/USD trends. The near-term movements of the AUD/USD pair
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When analyzing the economic landscape, it is crucial to move beyond the surface-level data and delve into the sub-components that provide a more nuanced understanding of the situation. For instance, while economists may predict a slight decrease in the Michigan Inflation Expectations Index, there is an anticipated increase in the Michigan Consumer Expectations Index. These
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