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Those waiting on the Fed for confirmation of an imminent rate cut came away empty handed after the post-meeting press conference on Wednesday. Jerome Powell made it abundantly clear that a rate cut during the next meeting in March was unlikely, stating that “ongoing progress in bringing [inflation] down is not assured, and the path forward is uncertain”. Stocks took the news badly, the Nasdaq Composite, S&P 500 and DJI falling 2.23%, 1.61% and 0.82% respectively, although the damage was entirely undone by the closing bell on Thursday.
All things considered, the effect on currencies was relatively minor, the DXY wicked to the downside initially before closing the day marginally in the black. The real moves came on Thursday, following the US Department of Labor reporting higher than expected jobless claims for the week ending January the 27th, prompting the Dollar to fall 0.4% versus the usual basket of currencies. The figures are a prelude to the more widely anticipated Nonfarm Payrolls, set to be published later today. The Fed has historically emphasised the need for weak growth in order to combat inflation but this rhetoric has recently been abandoned, Jerome Powell stating this week that “we want to see strong growth, we want to see a strong labour market”. Should the NFP data confirm a slowing labour market, it will absolutely play a part in the Fed’s outlook.
The weakness in the Dollar was enough to infuse gold with some degree of strength yesterday, gaining 0.77% to close the day at $2055 an ounce. A reminder that Chinese New Year is just around the corner, an event which has historically translated to more open interest in the gold market.
คำเตือนความเสี่ยง : การซื้อขายตราสารอนุพันธ์และผลิตภัณฑ์ที่มีเลเวอเรจมีความเสี่ยงสูง
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