The market takes breath after the long rally. What opportunities do traders have today?
Fed is braced for lifting interest rates
The Fed’s widely expected to have its benchmark interest rate lifted already this week because of a tightening labor market. The US major financial institution might also provide more detail on its ambitious plans to impact the mammoth bond portfolio, amassed to nurse the economic revival.
The major bank’s scheduled to issue its highly anticipated verdict on Wednesday at the conclusion of its two-day policy gathering. Fed Chair Janet Yellen will probably hold a press conference.
Financial experts surveyed by Reuters expect the major US bank to raise its benchmark rate to a range of 1.00-1.25% this week.
In December 2015, the Fed got down to its first tightening cycle in a decade. Wednesday’s quarter percentage point interest rate soar would happen to be the second push this year following a resembling move in March.
Since then, the unemployment rate has decreased to a 16-year minimum of 4.3%, while economic surge has reaccelerated, reacting to a lackluster first quarter.
The United States will publish a weekly update on unemployment claims on July 9, at 15:30 MT time.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.