Sentiment is mixed. The S&P500 eked out small gains after a volatile session. The FOMC minutes, released yesterday, came as a confirmation that the Federal Reserve (Fed) remains fully committed to bringing inflation down, even if it means slower growth. 

But, the recession talk, lower energy prices, and the softening Fed hawks despite yesterday’s hawkish minutes weigh on the US 10-year yield, and the the 2-10 year portion of the US yield curve inverted, which is read as ‘recession’ is either here, or about to hit the fan.  

Gold prices are on a freefall mode due to the strong dollar, and silver extends losses below $20 level. The mint ratio is above 90, hinting that either gold is still expensive, or silver is relatively cheap. But whether their prices will go up or down depends on US dollar.

The dollar trades at 20-year highs, and keeps pushing higher. 

Activity in Fed funds futures price in more than 93% chances for a 75bp hike by the end of this month, but many people think that the deteriorating economy since the Fed’s June could bring the Fed to hike by 50bp only instead of 75bp this month. The market chatter hints that the market pricing has room to get more dovish rather than more hawkish. 

In oil, we now see a clear pivot, as investors prefer selling tops rather than buying dips. Tensions between G7 and Russia is an upside risk in the short run, but if the attention remains on demand side, we could see limited upside, and a further downside in oil prices.

This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD rebounds above 1.0300 as dollar resumes post-US CPI decline

EUR/USD rebounds above 1.0300 as dollar resumes post-US CPI decline

EUR/USD has jumped back above 1.0300 amid fresh weakness in the US dollar. Risk sentiment regains traction despite the US-Sino tensions and China's covid woes. Investors reassess the US inflation data and its impact on Fed rate hike expectations.

EUR/USD News

GBP/USD recaptures 1.2200 ahead UK ministers’ meeting with energy firms

GBP/USD recaptures 1.2200 ahead UK ministers’ meeting with energy firms

GBP/USD is paring losses to trade above 1.2200 in early European trading. The US dollar sees renewed selling amid the return of risk flows. The safe-haven dollar fails to capitalize on China-linked concerns. The UK ministers will meet major energy firms amid a deepening energy crisis. 

GBP/USD News

Gold: Sellers poke $1,784 support on Fed, China jitters

Gold: Sellers poke $1,784 support on Fed, China jitters

Gold price holds lower grounds around intraday bottom near $1,780, as bears attack the 50-DMA heading into Thursday’s European session. The precious metal respects the US dollar’s latest rebound amid mixed concerns surrounding the Fed's next move and China.

Gold News

Shiba Inu price edges close to a 60% breakout as bears watch in disbelief

Shiba Inu price edges close to a 60% breakout as bears watch in disbelief

Shiba Inu price shows a resilience that has not only kept it above a significant support level but also managed to slowly catalyze a move that could result in a 60% upswing.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures