- Gold price trades closely to near the two-month high around $2,085 as investors’ expectations for Federal Reserve rate cuts in the June policy meeting have increased. As per the CME FedWatch tool, traders see a little over 57% chance for a rate cut by 25 basis points (bps) in the June meeting above from 53%, noted on Friday.
- The expectations for rate cuts in June have escalated as the United States core Personal Consumption Expenditure Price Index (PCE) data for January was in line with market consensus.
- This week, the strength in the Gold price will be tested by the US ISM Services PMI and labor market data for February, as well as Fed Chair Jerome Powell’s testimony before Congress.
- Fed Powell is set to speak on Wednesday and Thursday. His outlook on interest rates could influence market expectations for the timing of rate cuts. Powell may reiterate the need for more evidence to confirm that inflation will sustainably return to the 2% target.
- Resilient labor market conditions have deepened uncertainty about inflation returning to 2%. On Friday, Federal Reserve Governor Adriana Kugler said: "I am cautiously optimistic that we will see continued progress on disinflation without significant deterioration of the labor market.”
- This week, the US Nonfarm Payrolls (NFP) data will provide a fresh outlook on the labor market. Before the official labor market data, investors will focus on the Automatic Data Processing (ADP) Employment Change data, which will be published on Wednesday. The expectations for fresh private payrolls are at 150K, higher than the prior reading of 107K.
- Meanwhile, the US Dollar fell sharply as the weak US ISM Manufacturing PMI for February suggests the strong US economy is releasing some heat. Going forward, the US ISM Services PMI, which will be published on Tuesday, will provide more guidance on economic prospects.
면책 조항: 본 게시글에 표현된 견해는 전적으로 작성자의 견해이며 Followme의 공식 입장을 대변하지 않습니다. Followme는 제공된 정보의 정확성, 완전성 또는 신뢰성에 대해 책임을 지지 않으며, 서면으로 명시적으로 언급되지 않는 한 해당 내용을 기반으로 취해진 어떠한 조치에 대해서도 책임을 지지 않습니다.
이 글이 마음에 드시나요? 작성자에게 팁을 보내 감사의 마음을 전하세요.
더 오래된 의견은 없습니다. 소파를 가장 먼저 잡으십시오.