FOMC

Gold has dropped back to the start again on the back of hawkish comments from the Federal Reserve's Chairman, Jerome Powell, that sent the 2-year Trea.

The BoE is widely known for its brutal honesty and conservative approach, which raises a big question of whether a 75 bps rate really is on the table this ‘Super Thursday’. The author makes no representations as to the accuracy, completeness, or suitability of this information. The metal’s latest rebound also pays little heed to inactive Treasury bond yields due to the holiday in Japan. This decision triggered a spike in volatility, but Ripple has managed to hold above a stable support barrier. Gold price pares the biggest daily loss in a week around $1,638 during early Friday morning in Europe. The author will not be held responsible for information that is found at the end of links posted on this page. USD/JPY bears keep the reins for the third consecutive day even as Tokyo cheers the Culture Day holiday. The author has not received compensation for writing this article, other than from FXStreet. AUD/USD is keeping its recovery mode intact above 0.6350, despite the deepening contraction in China's services sector. Markets had started to price in a slower pace of rate hikes based on the following from today's FOMS statement: It also does not guarantee that this information is of a timely nature. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements.

CHICAGO, Nov. 2 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as investors waited for the release of ...

Platinum for January delivery rose 0.4 dollars, or 0.04 percent, to close at 950.9 dollars per ounce. This is the sixth rate hike by the Federal Reserve in 2022 and the fourth straight 0.75 percentage-point hike. Silver for December delivery fell 7.3 cents, or 0.37 percent, to close at 19.594 dollars per ounce. dollars, or 0.02 percent, to close at 1,650 dollars per ounce. The most active gold contract for December delivery rose 0.3 U.S.

Gold prices are moderating in Asia-Pacific hours as markets weigh the FOMC decision. The US jobs report on Friday may offer gold its next directional cue.

A positive divergence in the Relative Strength Index (RSI) lends support to a bullish outlook. The measured move (distance between troughs and peak) puts the breakout target at 1,840.75. Gold speculator trimmed their bullish bets on the metal, according to the latest Commitments of Traders report (COT) from the CFTC. A potential Double Bottom reversal is in play, which may mark the reversal point of a long-term downtrend. Gold is trading around 0.3% higher in Asia-Pacific trading, which trims the weekly loss to about 0.25%. According to the Job Openings and Labor Turnover Survey (JOLTS) for September, job openings accelerated to 10.72 million, beating the +10 million estimate and up from an upwardly revised 10.28 million in August. That would be the weakest growth since December 2020, likely cooling Fed rate hike bets and dragging the USD and yields lower, a positive outcome for gold. The downside risk would be a stronger-than-expected number. According to a Bloomberg survey, analysts expect the US to add 200k jobs for October. Assuming the US Dollar and rates across much of the curve remain off their highs, bullion prices should hold above recent lows around 1,615 to 1,617. The US Dollar DXY Index and mid- to long-term Treasury rates remain below their recent highs despite a modest increase in Fed rate hike bets. The US central bank hiked its benchmark rate by 75 basis points in a widely expected move.

With the Fed not even thinking or discussing the possibility of pausing, traders may be realizing that lowering inflation may take a lot longer than they ...

Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. With the Fed not even thinking or discussing the possibility of pausing, markets may be realizing that lowering inflation, in line with the Fed’s 2% goal, may take a lot longer than most had anticipated! Does it mean that the Fed may want to take a meeting to see how the lagging effects of rate hikes are working? However, in the press conference that followed, Powell said (among other hawkish comments) that it is “very premature to take about pausing rate hikes”.

The EUR/USD rose following the Fed's decision to raise interest rates by 75 basis points as expected as the US dollar tumbled across the board. The pa.

Solana price has recovered above a crucial support level, indicating a higher chance of an upward move. Gold price is resuming its Fed-induced downside, as US dollar bulls regain traction. EUR/USD stays under bearish pressure and trades deep in negative territory below 0.9800 on Thursday. The Bank of England is widely expected to hike its policy rate by 75 basis points but Governor Bailey's comments on the outlook could drive the pair's action. The author has not received compensation for writing this article, other than from FXStreet. Daily Pivot Point R3 Daily Pivot Point R2 Daily Pivot Point R1 Daily Pivot Point S1 The next strong barrier is located around the parity area, followed by 1.0055 and then the last week's high at 1.0090 will come into attention. The US [Dollar Index](https://www.fxstreet.com/currencies/us-dollar-index) turned negative to test Monday lows while gold and silver jumped. The pair rose from 0.9870 to as high as 0.9962 in the minutes after the FOMC statement.

The Federal Reserve delivered the fourth consecutive 75 basis point hike at its November meeting, bringing the policy rate to a range of 3.75-4.00%, ...

The softer tone, however, does not amount to a policy pivot and therefore should not be interpreted as a signal of an earlier end to the normalization cycle or a lower terminal rate. On the consumer prices front, the assessment was unchanged, with policymakers repeating that inflation remains elevated and that they are highly attentive to its risks. The November statement provided few new hints about the economy, reiterating earlier comments that recent indicators point to modest growth in spending and production. In any case, Powell could clear up doubts about the bank's next steps during his press conference, but so far there is no reason to believe that today's posture shift will fundamentally alter the bullish outlook for the U.S. [DailyFX quiz](https://www.dailyfx.com/research/dna-fx)and find out [guide for FX traders](https://www.dailyfx.com/education/beginner) This negative reaction, however, was somewhat reversed during Powell's press conference, after the chairman indicated that the central bank still has "some ways to go" in tightening and that the ultimate destination for interest rates may be higher than expected. Based on this assessment, it is clear that the central bank will not pivot to a rate-cutting regime any time soon. [DailyFX Economic Calendar](https://www.dailyfx.com/economic-calendar) [restore price stability](https://www.dailyfx.com/news/the-us-dollar-usd-is-primed-for-action-with-november-s-fed-decision-imminent-20221102.html). dollar](https://www.dailyfx.com/us-dollar-index) [fastest pace in 40 years](https://www.dailyfx.com/news/us-inflation-at-8-2-dollar-and-s-p-500-on-diverging-paths-on-hot-cpi-20221013.html).

Jerome Powell's speech was remarkably hawkish, surprising a market that in previous weeks had speculated on a slower pace of rate hikes in 2023. Read more.

As Powell indicated that interest rates would be higher than the FOMC's September predictions (4.6%), and would be maintained at a restrictive level for a longer period of time, a new upward repricing of US short-term Treasury yields could occur shortly. The dollar's interest-rate advantage over other major currencies will persist as Fed futures reprice across all maturities and Treasury yields rise. [Gold](http://capital.com/gold-price)dropped to 1,636 (-0.7%) and [silver](https://capital.com/silver-price)fell to 19.25 (-1.8%). Short position overnight fee Long position overnight fee Overnight fee time He seemed comfortable with a scenario of higher-than-needed interest rates since they could eventually provide the Fed space to manoeuvre if economic conditions warrant. Chairman of the Federal Reserve Jerome Powell remarked that continuous rate hikes will be appropriate, while the pace of increase will be less significant than how high rates must rise. Initial reactions saw the The median federal funds rate was predicted to reach 4.6% in 2023, according to September economic predictions, which will almost certainly be increased upwards in December projections.

The FOMC raised its target range for the federal funds rate by 75 bps today, which was widely expected. Today's statement was very similar to the one that ...

We currently look for the Committee to increase the target range for the fed funds rate by 25 bps on February 1 and by a final 25 bps on March 22. That is, the FOMC could very well determine at that meeting that another 75 bps rate hike is “appropriate” if growth remains strong and/or inflation remains elevated. We have been forecasting that the FOMC will raise the target range for the fed funds rate by 50 bps at its December 14 meeting. Specifically, the FOMC said “recent indicators point to modest growth in spending and production,” and that “job gains have been robust in recent months.” The Committee continued to describe the inflation rate as “elevated,” and it continues to anticipate that further increases in the target range for the federal funds rate will be “appropriate.” Indeed, Chair Powell noted in his post-meeting press conference that the FOMC still has “some ways to go” on tightening policy, and that the terminal fed funds rate may be higher than the 4.50%-4.75% target range that was shown by the median “dot” in the September SEP. Moreover, the current target range for the fed funds rate is now at a level that most observers would consider to be “restrictive.” That is, rates are now exerting headwinds on the pace of economic activity. As universally expected, the Federal Open Market Committee (FOMC) hiked rates by another 75 bps at its meeting today, bringing the target range for the federal funds rate to 3.75%-4.00%.

Fed Chairman Powell hinted at a slower pace of rate hikes, but the key question is whether the peak rate will be above or below 5%...

The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. As we go to press, markets have entirely reversed that initial move, with yields and the US dollar now trading higher than pre-Fed levels, while US indices and gold are trading lower. In other words, the Fed is finally acknowledging its aggressive tightening over the last six months will take time to influence the underlying economy and that it may soon shift toward rate hikes of 50bps, 25bps, or even outright pause interest rate increases to see how the economy develops. Powell suggesting that even if the central bank slows its pace of rate hikes soon, the ultimate peak interest rate may well be higher than previously anticipated. Therefore, we haven’t seen much market movement from the interest rate decision itself, but there are still some key nuggets for traders in the accompanying monetary policy statement and Chairman Jerome Powell’s ongoing press conference.

The US dollar depreciated across the board on Wednesday, immediately after the release of the Federal Reserve's Monetary policy decision. The pair ret.

Gold has managed to erase a small portion of its daily losses as it recovered above $1,620. Solana price has recovered above a crucial support level, indicating a higher chance of an upward move. Governor Bailey will speak on the policy outlook and respond to questions from the press next. The author makes no representations as to the accuracy, completeness, or suitability of this information. The author has not received compensation for writing this article, other than from FXStreet. Daily Pivot Point R3 Daily Pivot Point R2 Daily Pivot Point R1 Daily Pivot Point S3 Daily Pivot Point S2 Daily Pivot Point S1 Investors, however, had been focused on the statement, and this has been tilted to the dovish side.

As expected, the Federal Reserve of the United States (Fed) hiked the funds rate by 75bp yesterday. Investors focused on both the FOMC statement and the ...

During the press conference, the message sent by the Fed’s Chair, Jerome Powell, was totally opposite to what the statement said. Yet, the dollar rallied hard, as it caught many market participants by surprise. With this new rate hike, the funds rate has reached 4% – a 40+ year high. Investors focused on both the FOMC statement and the press conference, as they often trigger different market reactions. Indeed, the FOMC statement was dovish, but the press conference was hawkish, as the Fed made it clear it is now done with the rate hikes. As such, stocks rallied hard from their lows.

US Dollar: Dec '22 USD is Up at 112.895. Energies: Dec '22 Crude is Down at 88.55. Financials: The Dec '22 30 Year note is Down 47 ticks and trading a.

Trading in the commodities markets involves substantial risk and YOU CAN LOSE A LOT OF MONEY, and thus is not appropriate for everyone. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. The S&P contract is also Dec' 22. We always say this every time there is an FOMC Meeting, the markets have never shown any sense of normalcy on that day and we will always maintain a Neutral or Mixed bias. The S&P contract is the Standard and Poor's, and the purpose is to show reverse correlation between the two instruments. Please note: the front month for the ZN is now Dec '22. Gold is trading Lower which is correlated with the US dollar trading Up. ZN hit a Low at around 10 AM and the S&P moved Lower shortly thereafter. The dollar is Up, and Crude is Down which is normal, but the 30-year Bond is trading Lower. The ZN hit a Low at around that time and the S&P moved Lower shortly thereafter. The Financials should always correlate with the US dollar such that if the dollar is lower, then the The S&P is Lower, and Crude is trading Lower which is not correlated.

The FOMC on Wednesday, as expected, raised its federal funds target range by +75 bp to 3.75%-4.00%. That was the fourth consecutive +75 bp rate hike.

The peak rate is now just above 5%, but the risks may be skewed to the upside after Wednesday’s comments from Fed Chair Powell. At the September FOMC meeting, the Fed’s dot-plot indicated that FOMC members were forecasting a peak federal funds rate of 4.60% by the end of 2023. The markets have been underestimating where the peak Fed rate is going to be. Prior to this week’s FOMC meeting, the markets were expecting only another +100 bp worth of rate hikes. However, stocks reversed course Wednesday and plunged after Powell said we still have "some ways to go" on interest rates and that the ultimate level of the terminal rate may be higher than previously expected. Powell said the FOMC is aiming for tightening policy that’s “sufficiently restrictive” to return inflation to 2%.