Jump to content

USD: Fed minutes say nothing about rate cuts by May 2024


Recommended Posts

The minutes of the last meeting of the US Federal Reserve (Fed) have been released and there appears little appetite for cutting rates anytime in the near future as inflation remains high relative to the target rate.

 

 Jeremy Naylor | Analyst, London | Publication date: Wednesday 22 November 2023 11:34

The minutes show voting members still worry that inflation could be stubborn or move higher and that more may need to be done to ensure that does not occur. They at least said that policy will need to stay "restrictive" until data shows inflation on a convincing trek back to the central bank's 2% goal. Along with that, however, the minutes showed that members believe they can "proceed carefully" and make decisions "on the totality of incoming information and its implications for the economic outlook as well as the balance of risks." The release comes amid overwhelming sentiment on Wall Street that the Fed is done hiking. Traders in the fed funds futures market are indicating virtually no probability that policymakers will increase rates again this cycle, and in fact, are pricing in cuts starting in May. Ultimately, the market expects that the Fed will enact the equivalent of four quarter percentage point cuts before the end of 2024.

The Federal Reserve

In a recent video, the Federal Reserve's discussion about interest rates was revealed. It seems that they are not looking to cut rates in the near future because they are worried about inflation. They want to keep inflation around 2%, but it is currently too high. The members of the board are thinking about taking more action to stop inflation from getting worse.

The US dollar

When it comes to the USD, it hasn't been doing too well recently. It has become weaker compared to other currencies like the euro. The dollar has reached its lowest point since August, but it might not go up much more. It is expected to keep going down. Right now, it is at 103.24, and the next target price is 102.58, with support levels at 101.40.

Gold

The weak US dollar has actually been good for the price of gold. Gold has gone up and is now back above $2,000. This increase follows a similar surge at the end of October. If gold can stay at this level for a little while, it could reach record highs achieved on May 3rd at $2,082. So, gold is going up because the dollar is getting weaker.

 

 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Crypto trading is a bit complicated when it comes to understanding the dynamics in profit making. Some people are more inclined to technical analysis which of course has been the widely used trading tool but some are more inclined to fundamentals but sticking to fundamentals alone could be highly risky in my own opinion even though crypto is also financial instrument that often respond to news updates.  A blend of the two could provide a safety net for traders in minimizing losses compared to potential profit. The above case scenario is largely attributed to perp futures trading and other derivatives. TA and FA could also be very useful for spot trading but I feel timely listing of projects could largely determine one's profit from investing in a project. These may not be for all projects cos some are **** coins. This could be a personal perspective but I have noticed listing speed is also another important factor to consider along with project fundamentals when trading and if we are to include listing speed as a factor for choosing trade then it will affect our choice of trading platform cos some are more inclined to top cap projects while others are more inclined low cap gems.   My experience with ORDI has proven this trading skill rewarding. ORDI was first listed on Bitget before other exchange joined the listing party after it saw rapid adoption reflecting in it significant MCap growth. This chart should give us a glimpse of my experience with this strategy.
    • In a stunning display of market momentum, the PANDORA token, the first of its kind, has skyrocketed an astonishing 4872% from its introduction on February 2nd to February 7th. This remarkable performance has not only caught the attention of cryptocurrency enthusiasts but has also solidified PANDORA’s position as a groundbreaking asset in the digital currency landscape. Pandora's ERC-404 protocol revolutionizes the token landscape by seamlessly blending the qualities of ERC20 and ERC721 standards. This experimental mixed implementation enables persistent liquidity and non-fungibility for NFTs, unlocking a realm of possibilities previously unexplored. Adding to the excitement, Bitget Wallet is gearing up to introduce a specialized section dedicated to ERC-404 token market listings. This feature creates a hub for tokens that blend the best of both worlds—the liquidity of ERC-20s and the uniqueness of ERC-721 NFTs. I have come to believe that, the electrifying surge of PANDORA token and the innovative ERC-404 standard is not just a fleeting trend but a window into the future of cryptocurrency.
    • A significant turning point in the #PORTALxBitget collaboration is the listing of $PORTAL on Bitget through the Candybomb event, which opens up benefits and synergistic prospects like 1. Diversified Trading choices: Users now have access to a wide range of trading choices thanks to $PORTAL's listing on the exchange, including cutting-edge leveraged trading capabilities and spot trading. This gives customers the freedom to interact with $PORTAL in a way that suits their preferred level of risk and trading techniques. 2. Community Synergy: By uniting the exchange users and the pre-existing $PORTAL community, the Candybomb event stimulates community engagement. Through this synergy, a positive environment surrounding #PORTALxBitget may be developed, encouraging cooperation, information exchange, and sustained interest in the project. Could this recent collab stimulate the  stage for a fruitful and mutually beneficial relationship between #PORTAL and exchange.
×
×
  • Create New...
us