In the realm of finance, there are several indicators that are currently being monitored. Specifically, the Euro and its exchange rate with the US Dollar, denoted as EUR/USD, have experienced a slight decline leading up to Wednesday’s trading session. Additionally, the US Dollar’s Federal Open Market Committee (FOMC) is being closely observed, along with the European Central Bank (ECB). The exchange rate between the Euro and Norwegian Krone (EUR/NOK), as well as commodity prices for Crude Oil and Gold, are also significant factors. It is believed that recent US Consumer Price Index (CPI) data may signal a change in FOMC policy towards pausing or skipping interest rate hikes. Market direction in the near future will likely be influenced by developments following the FOMC decision press conference.
US stock markets continue to rise as inflation cools, giving the Federal Reserve room to wait and see at the upcoming FOMC meeting. A rate pause is expected this week, with a possible increase in rates in July. The Fed’s guidance and economic projections will determine what comes next. US Treasury yields are high, causing gold and silver prices to decline. Silver prices are struggling to hold above a rising channel pattern, with potential for further decline.
The price of gold, represented by XAU/USD, experienced a decline due to the increase in Treasury yields prompted by US CPI data. Although there is an upward trend in the direction of CPI, it is possible that further measures may be required. The language used by the Fed during their upcoming FOMC meeting will be closely analyzed for any indications on potential future rate changes. The US dollar is also a significant factor in this scenario.