This week started with the talk of the United States banning Russian oil exports, so XBR/USD saw $130 a barrel. Then the ban became reality. What does it really mean for the market?
Gold soars on American data
On Friday, gold managed to rally following the publication of American economic reports overnight.
On the Comex exchange, June delivery gold futures decreased by 0.2% being worth $1,281.85 an ounce.
The US Department of Labor informed that initial jobless claims headed north by 37,000 to a seasonally updated 230,000 by April 21, thus confounding experts’ forecast for a leap to 199,000.
On Wednesday, the Commerce Department told that core durable goods orders managed to leap by 0.4% in March, surpassing analysts’ forecasts for a 0.2% ascend.
As a matter of fact, without aircraft, non-defense capital goods orders that appear to be a closely watched gauge of business spending plans inched up by 1.3% in March, which is above hopes for a 0.1% rally.
Investors’ focus is going to be on the first-quarter GDP data due a bit later in the day. The data is anticipated to reveal that the American economy keeps outperforming. Traders expect a 2.2% annualized gain.
However, some market experts told that the data might demonstrate the impact from the government shutdown in 2018.
As experts pointed out, they note greater uncertainty in the first quarter GDP than usual due to the government shutdown over December-January that provoked delayed salary payments for up to 800,000 federal staff members as well as disruption to tax refunds and also regulatory approvals.
The USD index, gauging the US currency’s purchasing power versus a number of six main currencies, showed 97.843, decreasing by 0.1% from a maximum of 97.958 hit overnight.
The common currency demonstrated an outcome of $1.1143, having slumped to $1.1125 overnight.
Additionally, the UK pound was worth $1.2909, having declined to a two-week minimum of $1.2867 on Wednesday.
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.
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.
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.
Every week we expect many interesting events that can shake the market.