- Geopolitical tensions ratcheted up after Israeli strikes on Iran's embassy in Syria, raising the risk of a further escalation of conflict in the Middle East and lifting the safe-haven Gold price to a fresh record peak on Wednesday.
- Data released this week showed that the US manufacturing sector expanded in March for the first time since September 2022 and that demand for labor remains elevated, forcing investors to trim their bets for rate cuts in the US.
- The Labor Department published the Job Openings and Labor Turnover Survey (JOLTS) on Tuesday, which showed that job openings rose modestly from 8.75 million and stayed at a historically high level of 8.76 million in February.
- Separately, the Commerce Department reported that orders for manufactured goods rebounded in February after two straight monthly declines and rose more than expected by 1.4% amid demand for machinery and commercial aircraft.
- San Francisco Fed President Mary Daly noted on Tuesday that inflation is gradually decreasing, though she feels no urgency to lower interest rates, and that three rate cuts this year is a projection, not a promise.
- Cleveland President Loretta Mester said that substantial progress has been made on inflation, though she wants to see more evidence that inflation is headed towards the 2% target before cutting interest rates.
- This comes on the back of Fed Chair Jerome Powell's remarks on Friday, saying that there was no need to be in a hurry to cut interest rates and raised doubts if the central bank will cut rates three times this year.
- The current market pricing indicates a nearly even chance that the Federal Reserve will start cutting rates in June and a total of 65 basis points (bps) rate cut for 2024, lower than the central bank's projection of 75 bps.
- The yield on the benchmark 10-year US government bond advanced to a four-month high, which should help limit the downside for the US Dollar and cap gains for the non-yielding yellow metal amid overbought conditions.
- Investors now look to the US economic docket, featuring the ADP report on private-sector employment and ISM Services PMI, which, along with speeches by influential FOMC members, should provide a fresh impetus
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.
