For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
Gold edges up on diving greenback
On Monday, gold managed to rally because the evergreen buck sank, while trade worries between China and America backed the precious commodity too.
August delivery gold futures rallied by 0.2% on the Comex exchange being worth $1,273.60 a troy ounce.
America is about to declare China’s investment in American technologies companies a real threat to economic as well as national security. It follows from reports uncovered on Monday that cited eight folks already familiar with those ambitious plans.
In addition to this, the reports stressed that American Treasury Secretary Steven Mnuchin would propose to administer the law in a report expected to be published on June 29.
On Friday, American leader Donald Trump threatened to impose a 20% duty on all American imports of European Union-assembled vehicles, boosting trade tensions with the European bloc.
Certainly, the European Union came up with a response. As a matter of fact, a senior European Commission official told that the European Union would adequately respond to any American move to have duties on vehicles produced in the EU lifted.
At the same time the USD Index, which normally gauges the evergreen buck versus a bunch of six key currencies, went down in morning trade, hitting 94.4960. It’s apparent that the USD has been going up since April, although the looming trade conflict is starting to generate jitters on the market.
That’s a common occurrence greenback-denominated assets, including gold happened to be sensitive to any changes in the evergreen buck. Therefore, a dive in the US currency normally makes gold less costly for those investors who hold foreign currencies, therefore spurring demand for the number one precious metal.
As for other precious metals, silver futures went down by 0.54% demonstrating an outcome of $16.370 a troy ounce. Additionally, platinum futures rallied by about 0.35% showing $878.10 an ounce.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on November 5, 14:30 GMT+2.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on October 8, 15:30 GMT+3.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
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.