Another day and another highly anticipated money making opportunity. That’s one of the most lucrative trends of the current financial climate that we find ourselves in right now.
Earlier this week, Minutes from the May Meeting confirmed the stubbornness of high inflation is dividing the Federal Reserve over how to manage interest rates in the coming months, leaving the outlook for the Fed’s policies cloudier than at any time since it began raising rates back in March 2022.
Although prices are stabilizing, inflation remains well above the Fed’s 2% target – and that has Fed officials increasingly divided over their next move.
Since the collapse of several prominent banks in the United States and Europe, which has resulted in a global credit crunch and paved the way for a recession – traders have been anticipating that the Federal Reserve will cut rates by the end of the year.
But those hopes were squashed by the May FOMC meeting minutes, showing that is unlikely to happen soon.
In fact, a number of top Fed officials expressed the need to continue raising interest higher as ‘insurance’ against inflation. Which, put another way, means that the Fed isn’t done ‘breaking things’ yet.
The big question now is how high will interest rates go in 2023? And how long will they stay there?
Extraordinary times create extraordinary opportunities and right now these markets remain a trader’s paradise. Every macroeconomic release – regardless of whether it meets, beats, or misses expectations – brings with it incredible opportunities to generate huge profits fast!
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.
Follow us on Telegram
Stay updated of all the news
EUR/USD battles 1.0700 ahead of EU data
EUR/USD has come under renewed selling pressure, testing 1.0700 ahead of the mid-tier EU data this Tuesday. Cautious market mood and disappointing German Factory Orders weigh negatively on the currency pair. The US Dollar rebound adds to the EUR/USD retreat.
GBP/USD turns south toward 1.2400 as US Dollar recovers
GBP/USD is heading south toward 1.2400, meeting fresh supply in the European session. The US Dollar is seeing renewed safe-haven buying amid a risk-off market profile, acting as a headwind to the pair.
Gold oscillates around $1,960 amid mixed responses to Fed’s June policy
Gold price is auctioning inside the woods around $1,960.00 in the early London session. The precious metal is displaying back-and-forth action as the investing community is divided about the interest rate decision by the Fed to be taken in June’s monetary policy meeting.
Is the metaverse hype back in action?
Although there are no major macroeconomic events this week, investors can expect massive volatility on a daily basis. The reasoning behind this outlook is that Apple will be conducting the 2023 Apple Worldwide Developers Conference (WWDC) on June 5.
Markets are likely to focus on ECB commentary
This is a very quiet week in terms of data and hence markets are likely to focus on last minute central bank commentary. The FOMC blackout period kicked off already on Sunday, but today we have a bunch of ECB speakers on the wires.