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 tacks on
On Monday, gold managed to rally in Asia because recession worries sparked safe-haven demand.
As a matter of fact, on the Comex exchange, gold futures jumped by 0.3% being worth $1322.05. The previous week the yellow metal demonstrated its weekly profit in a row, soaring by up to 1%, which is the most impressive outcome since early February.
Additionally, the spread between 3-month Treasury bills as well as 10-year note gains reversed for the first time since 2007 right after American manufacturing data missed forecasts. The given reverse of the yield curve is generally considered to be a major gauge of recession.
In fact, the news sent global shares down, with Japan’s Nikkei 225 diving over 3% on Monday. As for the Hang Seng Index, it decreased by 2% in Hong Kong.
Additionally, the yellow metal headed north because the appetite for safer assets tacked on.
Market experts told that price action in the yellow metal keeps backing their view that expected data deterioration will assist to cause a gold leap because interests rates keep diving against the backdrop of a decelerating global economy.
The major US bank kept interest rates intact earlier this month and stressed that there wouldn’t be any further rate lifts in 2019, although in December the Fed had hinted at two probable rate lifts.
In addition to this, the uncertain Brexit situation is going to be closely watched. Friday’s deadline for Great Britain to depart from the European bloc has been pushed back by a couple of weeks to April 12
If lawmakers don’t want to approve the deal for the third time, then a number of options, such as a no-deal Brexit, will become available.
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.