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 surges a bit
On Tuesday, gold managed to gain a bit due to the fact that the first dive in factory gate inflation for four months backed the argument that the major US bank should suspend monetary policy tightening and traders looked ahead to a bunch of remarks from policymakers.
Eventually, on the Comex exchange February delivery gold futures headed north by 0.19% trading at $1,293.70 a troy ounce.
In December, producer prices tumbled a more-than-anticipated 0.2%, while the core PPIalso suddenly slipped. The data underlined hopes that the key US financial institution can be patient on future rate lifts considering that inflation is still steady.
Higher interest rates tend to put pressure on demand for the yellow metal in favor of yield-bearing assets.
On Tuesday, markets will also get remarks from a number of Fed representatives as they need further clues on the tempo of future rate lifts through this year and beyond.
Minneapolis Fed President Neel Kashkari is expected to deliver a speech on the regional economy at 9:30AM ET before the Rochester Economic Summit.
After that, at 1:00PM ET Kansas City Fed President Esther George is going to talk about the economic outlook as well as monetary policy.
The final speaker will be Dallas Fed President Robert Kaplan who is going to take part in a question-and-answer session prior to the Plano Chamber of Commerce Annual Meeting.
After the major US bank had interest rates lifted four times last year, market participants currently expect the Fed to cease its monetary tightening policy in 2019 because risks to the American economy mount.
As for other metals, silver futures tacked on by 0.16% being worth $15.713 a troy ounce.
Palladium futures managed to ascend by 0.79% being worth $1,292.15 an ounce. As for platinum, this commodity gained 0.55% hitting $806.95.
Copper rallied by 0.72% showing $2.654 a pound.
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.
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.