The major focus for the week was yesterday’s FOMC meeting, with rising inflation the is a lot of pressure on the Fed to take action with regards to managing the rising price risk, following on last months hawkish approval where they decided to push up rates in 2022 to 2023. What we did get some more clarity on is that the planned interest rate hike should take place in March 2023, tapering of their asset purchases should take place roughly at about the same time.
On the back of the Fed’s statements we saw some more Dollar weakness as investors start taking a greater riks on approach, the Nasdaq, Dow and S&P all closing higher for the day following the severe selloff that we saw on Tuesday following the Asian selloff. European indices followed the US lead, as the Dax and FTSE closed the day higher.
The precious metals performed well post FOMC as Gold and Silver took the Fed’s dovish approach positively as Gold recovered to rally during the Asian session to trade at $1817 up from its low yesterday of $1792. Silver outperformed Gold as it recovered to be trading at $25.40 up from its low yesterday of $24.61. Brent Crude continued its upward trajectory as it was trading at $74.55 during the open of the European session.
Bitcoin and Ethereum continue to consolidate following the strong move to the upside on Monday.
As the European markets opened up, the Pound, Australian Dollar, New Zealand Dollar and Canadian Dollar are the strongest currencies, while the US Dollar, Japanese Yen and Swiss Franc are the weakest currencies.
Keep an eye out for Advanced GDP out of the US today.
2:30 pm - Advanced GDP q/q (USD)