Japan's inflation is set to reach 2% in April's reading, for the first time since 2015. But what about the weaker Yen?!
Tag - federal reserve
This week, the majors will be affected by the interest rate decision by the Federal Reserve, NFP, the BOE Meeting, and more events.
Whenever inflation exceeds 4% and unemployment falls below 5%, the US economy enters a recession in two years.
The move by the US and its Western allies to freeze most of Russia's foreign exchange reserves has raised fears that the US dollar is being used as a weapon. That could wreck the greenback's dominance.
The era of COVID-19 cheap money is over. Who is afraid of the Fed's tightening cycle? Apparently not stock-market investors.
The Federal Reserve is expected to raise the interest rate by 25 basis points during the upcoming meeting on Wednesday, at 20:00 GMT+2. As inflation keeps surging, this will be the first small attempt to curb it. What does it mean for the US dollar?
Apart from inflationary pressures, all other factors were serving as tailwinds to gold after reaching $2000 in August 2020. But inflation along with the slowing global economy are the factors that make gold shining brighter.
US Inflation has skyrocketed in January to 7.5%, recording the largest annual increase in 40 years. This jump in prices is the fastest pace of inflation since 1982.
The major central banks will walk different paths in 2022. Some will respond to the threat of inflation, while others will continue to focus on boosting economic growth and recovering from the pandemic.
After US CPI markets await for FOMC and ECB meetings. Together, the events will add volatility in all EUR and USD pairs and gold. It may be the last intense trading week of December. Don’t miss this video. The news and trade ideas in it may surprise you!
Jerome Powell is getting a second term as chair of the Federal Reserve. Powell is seen as less dovish than Brainard (another nominee). The US dollar should get some support from the possibility of faster-than-expected Fed tapering.
The rally of the US dollar has stopped for a while. That allowed risk-on assets (GBP, NZS, AUD, stocks) and also gold to recover some losses.