Good day for all traders out there! We prepared a gold analysis and a bunch of other news for you to enjoy! Here's what you should know:
American labor market is still tight
American labor markets were still tight due to the fact that US businesses struggled to gain skilled employees and wages rallied a bit, as the Fed reported on Wednesday in its latest report on the US economy.
According to the Fed’s so-called "Beige Book" report, a glimpse of the American economy built around conversations with business contacts across all 12 of the major bank’s districts, discovered that economic activity went up at a slight-to-moderate tempo in March as well as early April. Several districts posted some strengthening in economic surge.
Moreover, prices have tacked on a bit since the last Beige Book, with levies, freight costs as well as soaring wages often cited as major factors, the major bank told. The bank added that consumer spending turned out to be mixed, although suggested sluggish sales for both general retailers as well as auto dealers.
Aside from that, wages inched up a bit in most districts for both unskilled and skilled employees, with only three reporting moderate surge in employees’ pay, as the Federal Reserve told.
Companies in most districts posted shortages of skilled employees, mostly in construction and manufacturing, although in technical as well as professional roles. In fact, businesses have responded to the tight labor market by simply spurring bonuses as well as benefits packages, along with wages soaring a bit.
In terms of the manufacturing sector, the major US financial institution told that contacts in many US districts informed that trade-related uncertainty was putting pressure on activity.
As a matter of fact, the influence of the 35-day American government shutdown, which started in late December turned out to be muted.
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.