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Market Overview | August 20, 2024
Gold (XAU/USD) trades back below $2,500 on Monday as it corrects the gains made after it broke above resistance to a new all-time high on Friday.
Gold prices soared above the $2,500 mark for the first time, driven by expectations of potential interest rate cuts, which have weakened the dollar to its recent low levels. Market participants are now focused on Wednesday’s FOMC meeting minutes for insights into the Fed’s next monetary policy moves.
The strong performance of the gold market in 2024 is not only a response to global economic uncertainty but also a deep understanding of central bank policies and market trends. Gold, as a traditional safe-haven asset, still cannot be ignored in its value and attractiveness in a changing market environment. The rise in prices is not only a reflection of market sentiment but also an expectation of future economic policies and the global economic situation. Investors need to closely monitor the re
Market Review | August 19, 2024
July's strong US retail sales and declining jobless claims highlight the resilience of the US economy despite easing inflation pressures. Meanwhile, the UK saw a surprising drop in unemployment but slower wage growth, and the Eurozone experienced its sixth consecutive quarter of productivity decline. China's sharp drop in foreign direct investment reflects growing concerns over its economic outlook. Globally, economic dynamics are complex, with the US remaining strong
Market Review | August 19, 2024
Boosted by the weakening of the US dollar and the expectation of an imminent rate cut by the Federal Reserve, spot gold broke through $2,500/ounce, setting a new record high. It finally closed up 2.08% at $2,507.7/ounce. Spot silver finally closed up 2.31% at $29.02/ounce.
JPY is strengthening against USD after Japan's strong GDP growth raised prospects of a Bank of Japan rate hike. The USD/JPY pair, initially boosted by a strong USD and higher Treasury yields, is now pressured by uncertainty over a potential US rate cut, with traders debating between a 25 or 50 basis point reduction.
XAUUSD Technical Analysis
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This article explores the recent revival of yen carry trades, and the anticipated re-entry of quantitative funds into U.S. markets. It also covers the impacts of Typhoon Lan on Japan, Kamala Harris's new economic policy proposal. These developments highlight the dynamic shifts in global financial markets and the strategic responses from businesses and governments.
Asian equities soared as traders returned to risk assets amid growing optimism that the US economy will avoid a recession. The yen is poised for its worst week since May.
On Thursday (August 15th), strong US economic data led traders to reduce their bets on the Federal Reserve's interest rate cuts.
stronger-than-anticipated U.S. Retail Sales growth and Initial Jobless Claims, eased recession fears and bolstered the dollar's strength in the last session.
Market Review | August 16, 2024
For June 2024, Canada's CPI rose by 2.7% year-over-year, down from 2.9% previously. This decrease in core inflation is driven by a combination of slower economic growth and moderated wage growth, even with a strong labor market. The FOMC meeting minutes from July 2024 indicated that the Federal Reserve decided to maintain the federal funds rate within the target range of 5.25% to 5.50% and revealed a shift in the Fed's focus. The latest data on U.S. Initial Jobless Claims, for the week ending...
Market Review | August 16, 2024
This year's arbitrage gains have been erased, with 65%-75% of these positions closed. The dollar's reaction has been as expected but slightly disappointing, with a significant 100 basis point rise in U.S. short-term interest rates impacting it. JPMorgan has reduced its dollar forecasts, now predicting USD/JPY at $146 in Q4 2024 and $144 in Q2 2025, down from $147. Despite a weakening job market, other economic data remains strong.