US: All eyes on Yellen and Q3 GDP - TDS

Sandeep Kanihama FXStreet Contributor

Analysts at TDS point out that the Fed Chair Yellen will deliver her economic outlook to the Joint Economic Committee of Congress at 10:00 ET and she is likely to stick to the recent script and advocate a gradual normalization of policy.

Key Quotes

“NY Fed President Dudley will participate in a moderated Q&A on the US economy at 8:30 ET and San Francisco Fed President Williams (2018 voter) will speak at a 12:45 ET luncheon.”

“We are also scheduled to get the Beige Book at 14:00 ET, which will give an update on regional conditions heading into the December FOMC.”

“The second print of Q3 GDP is the most notable release on the data calendar and markets are expecting a modest upward revision to an annualized 3.2% q/q from the initial 3.0% print. Pending home sales for October are the only other release and the market consensus is for a 1.0% m/m increase.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

GBP/USD flirts with tops near 1.3470

GBP/USD manages to regain composure and challenge the area of daily highs around 1.3470 on Friday. Cable picks up pace despite marginal gains in the Greenback in a context of swelling geopolitical tensions and rising global oil prices.

Gold remains below $4,100 despite receding Fed hike bets, weak USD

Gold opens with a bullish gap at the start of a new week amid receding Fed rate-hike expectations and a bearish US Dollar. Oil prices tumbled after Trump canceled an attack on Iran and said that a deal is near, easing inflation fears. This forces traders to dial back bets on extreme Fed tightening and drags the USD to a fresh low since June 17, which, in turn, is supporting the non-yielding bullion. However, the recent repeated failures to find acceptance above $4,100 warrant caution for XAU/USD bulls.

Gold remains offered around $4,050 despite falling Oil prices

Gold remains offered around $4,050 in Asia on Monday, despite the sharp sell-off in Oil prices and the USD/JPY slump-driven US Dollar weakness. Prospects of Fed rate hikes and Mideast uncertainty keep the bullion under pressure, as the Nonfarm Payrolls (NFP) week kicks in.

Week ahead: US payrolls report and AI earnings to keep investors on edge

After the Fed decision, NFP report awaited for more rate hike clues. Employment also on the agenda in Canada and New Zealand. Chinese trade and Japanese wage data to be watched too. But Iran and AI headlines to remain in driver’s seat for risk sentiment.

Middle East War updates: Trump holds off Iran strikes on pledge Hormuz deal is close

Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week. Risk sentiment improves on Monday, undermining demand for the US Dollar Index and drag crude oil prices lower.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.