Both gold and the British pound have experienced declines follow
On Wednesday, the Nigerian naira (NGN) performed the best among 20 global currencies we monitor, while the Russian rouble (RUB) showed the weakest performance. The US dollar was the strongest among major currencies, while the British pound (GBP) lagged behind.
A hawkish stance from the Federal Reserve on Wednesday led to a rise in gold prices above $1,945 initially, but these gains were erased during the American session. The Fed, as anticipated, kept its benchmark interest rate unchanged, but it adopted a notably hawkish tone. According to the updated quarterly projections, the Fed signaled a potential interest rate hike by the year's end. Additionally, the market now expects a smaller 50-basis-point rate cut in 2024, compared to the previously expected 100-basis-point cuts. This shift in expectations led investors to price in a higher likelihood of a rate hike in November or December, which had a positive impact on the US Dollar Index (DXY) and a negative effect on gold.
Suki Cooper, an analyst at Standard Chartered, remarked, "We anticipate that the potential for gold's price to increase in the near term will be limited, and any upward momentum may not be sustained until there is growing confidence in the market that global and US interest rates are poised to decrease, and the US dollar weakens."
During the Asian session, XAU/USD experienced a slight decline. Today, traders should closely monitor US macroeconomic reports, as they are likely to drive gold's price in the medium term. The release of Weekly Jobless Claims data and the Philadelphia Fed Manufacturing Purchasing Managers' Index is scheduled for today at 12:30 p.m. UTC. Furthermore, volatility could be triggered by the release of Existing Home Sales data at 2:00 p.m. UTC. Reuters analyst Wang Tao suggested that "Spot gold may fall within the range of $1,917 to $1,921 per ounce, as a wave C from $1,900 may have concluded around its 61.8% projection level of $1,943."
Amid the hawkish comments from the Federal Reserve, the British pound (GBP) initially rebounded from a three-month low on Wednesday but experienced a sharp decline during the American session. While the Fed kept its base interest rate unchanged, it indicated an intention for more interest rate hikes by the end of 2023 and fewer rate cuts in 2024. This unexpected hawkish stance surprised the market and bolstered the US dollar. Recently, GBP/USD continued to decline during the early European session as speculation grew regarding whether the Bank of England (BOE) would follow the Fed's lead and keep interest rates unchanged today.
The BOE is set to announce its interest rate decision today at 11:00 a.m. UTC. While the market generally anticipates the regulator to maintain interest rates at their current levels, there remains significant uncertainty surrounding the forthcoming announcement. Furthermore, some analysts still anticipate that the Central Bank may raise the base interest rate.
JP Morgan economist Allan Monks stated, "We maintain our forecast for a rate hike, but now view it as a 50-50 chance." Although the latest UK inflation figures have increased the likelihood of a pause in the rate-hiking cycle, inflation in the UK is the highest among G7 economies, significantly surpassing the BOE's target. Therefore, even if the regulator chooses to keep the base interest rate unchanged, its post-meeting statement is unlikely to be dovish. Consequently, GBP/USD may rebound from the level of 1.23000 and ascend toward 1.23700.
A hawkish stance from the Federal Reserve on Wednesday led to a rise in gold prices above $1,945 initially, but these gains were erased during the American session. The Fed, as anticipated, kept its benchmark interest rate unchanged, but it adopted a notably hawkish tone. According to the updated quarterly projections, the Fed signaled a potential interest rate hike by the year's end. Additionally, the market now expects a smaller 50-basis-point rate cut in 2024, compared to the previously expected 100-basis-point cuts. This shift in expectations led investors to price in a higher likelihood of a rate hike in November or December, which had a positive impact on the US Dollar Index (DXY) and a negative effect on gold.
Suki Cooper, an analyst at Standard Chartered, remarked, "We anticipate that the potential for gold's price to increase in the near term will be limited, and any upward momentum may not be sustained until there is growing confidence in the market that global and US interest rates are poised to decrease, and the US dollar weakens."
During the Asian session, XAU/USD experienced a slight decline. Today, traders should closely monitor US macroeconomic reports, as they are likely to drive gold's price in the medium term. The release of Weekly Jobless Claims data and the Philadelphia Fed Manufacturing Purchasing Managers' Index is scheduled for today at 12:30 p.m. UTC. Furthermore, volatility could be triggered by the release of Existing Home Sales data at 2:00 p.m. UTC. Reuters analyst Wang Tao suggested that "Spot gold may fall within the range of $1,917 to $1,921 per ounce, as a wave C from $1,900 may have concluded around its 61.8% projection level of $1,943."
Amid the hawkish comments from the Federal Reserve, the British pound (GBP) initially rebounded from a three-month low on Wednesday but experienced a sharp decline during the American session. While the Fed kept its base interest rate unchanged, it indicated an intention for more interest rate hikes by the end of 2023 and fewer rate cuts in 2024. This unexpected hawkish stance surprised the market and bolstered the US dollar. Recently, GBP/USD continued to decline during the early European session as speculation grew regarding whether the Bank of England (BOE) would follow the Fed's lead and keep interest rates unchanged today.
The BOE is set to announce its interest rate decision today at 11:00 a.m. UTC. While the market generally anticipates the regulator to maintain interest rates at their current levels, there remains significant uncertainty surrounding the forthcoming announcement. Furthermore, some analysts still anticipate that the Central Bank may raise the base interest rate.
JP Morgan economist Allan Monks stated, "We maintain our forecast for a rate hike, but now view it as a 50-50 chance." Although the latest UK inflation figures have increased the likelihood of a pause in the rate-hiking cycle, inflation in the UK is the highest among G7 economies, significantly surpassing the BOE's target. Therefore, even if the regulator chooses to keep the base interest rate unchanged, its post-meeting statement is unlikely to be dovish. Consequently, GBP/USD may rebound from the level of 1.23000 and ascend toward 1.23700.
Comment:
The market is still went as I predicted
Comment:
Still going down as expected
Comment:
It's still going down just like my prediction
Comment:
the market is slightly going up
Comment:
It's on the way to go down
Comment:
Slightly go up
Comment:
The market is fluctuated but still in prediction
