About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.
Federal Reserve’s Meeting
The Federal Reserve strongly influences the USD exchange rate. The central bank has already raised the interest rate 2 times this year. The market anticipates 1-2 additional rate hikes. However, just recently, the US president’s top economic adviser urged the Fed to raise interest rates “very slowly”, despite the fact that usually the administration avoids comments on monetary policy.
The US dollar needs some support to continue its upward movement. The Fed will release the interest rate and the economic outlook on August 1 at 21:00 MT time. If the Fed takes the administration’s comments into consideration, traders may anticipate a more dovish statement of the central bank.
• If the Fed is hawkish, the USD will move up;
• If the Fed is dovish, the USD will lose momentum.
Check the economic calendar
Source of the picture: TRADINGECONOMIC.COM|FEDERAL RESERVE
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