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?
Yellow metal recovers win streak
On Tuesday, gold futures managed to gain, demonstrating the fourth winning day for the last five trading sessions because the evergreen buck slumped and a degree of uncertainty crept into stock markets, still keeping to record peaks.
The yellow metal surged because stock-index futures indicated a mixed start for Wall Street because traders wait for the kickoff of a two-day Fed gathering because Chinese factory data revealed some softening as well as a flurry of corporate earnings, with less-than-impressive outcomes for Alphabet.
Besides this, gauging the greenback’s purchasing power versus its main rivals, the USD index slumped by about 0.1%.
As a matter of fact, June delivery gold futures managed to surge by up to 0.5% ending up with $1,287.70 an ounce. Additionally, May delivery silver futures went up by about 0.7% trading at $14.95 an ounce. As for July delivery silver futures, they hit $15.005, adding 0.5%.
Policy makers are anticipated to leave interest rates intact after Wednesday’s conclusion of a two-day gathering, although the statement by Fed Chair Jerome Powell are going to be monitored for prompts to the Fed’s future plans, right after the panel suddenly paused its plan for rate lifts in January and ceased the wind-down of its balance sheet.
In addition to this, the employment cost index for the first quarter will be uncovered at 8:30 a.m. Eastern Time, with analysts expecting a 0.7% leap.
February’s Case-Shiller house price index will be released at 9 a.m. As for April’s Chicago-area purchasing managers index will be uncovered at 9:45 a.m.
Aside from that, a private indicator of China factory activity decreased in April, although still indicating expansion, which is in line with official data, which also demonstrated slower surge, which is a probable boost for the yellow metal.
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.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.