XAU/USD Post-CPI Data Analysis
Gold prices surged post-CPI data, hitting a third consecutive weekly gain and surpassing $2,400, driven by expectations of Fed rate cuts. Positive sentiment and global economic uncertainty boost gold's appeal as a safe haven. Despite minor pullbacks, the overall trend remains bullish with short-term volatility anticipated.
Today's analysis: XAU/USD Drops as U.S. Bond Yields Rise and Hawkish Fed Comments Emerge
U.S. bond yields rose, and the dollar recovered after hawkish Fed comments, causing gold prices to fall from $2,334. The Fed expects high inflation to persist, delaying rate cuts. Traders await the PCE Price Index. Gold's next support is $2,300, with potential declines to $2,277 and $2,222. Recovery to $2,350 targets resistance at $2,387 and $2,400, but the bearish trend holds below $2,340.10, aiming for $2,272.06.
Today's analysis: USDJPY Poised for Decline Despite Recent Upsurge; Mixed BOJ Signals
Bank of Japan board members are divided on rate hikes due to high living costs and price risks. Some urge caution, while others push for early action. The BoJ will closely monitor data ahead of potential interest rate adjustments. USD/JPY rallied past 158.40 to 159.00, maintaining a bullish trend towards the next target of 160.20.
Central Bank Weekly: Fed and BOE Shape Currency and Growth Forecasts
This week weve seen the Federal Reserve surprise markets while the Bank of England remains sidelined thanks to Brexit.
Central Bank Weekly: Has the Fed‘s Dovish Shift Altered the Market’s Course？
The March Fed meetings effects are still being felt more than a week later.
Central Bank Weekly: After Fed Meeting, One Cut Priced-In for 2020
The March Fed meeting produced a large reaction by both US Treasury yields and the US Dollar.