Gold is trying to recover from the losses of the last session and is clearly rising
Gold prices were able to rise during trading on Wednesday, as the precious metal is trying to recover from the losses it incurred in the last session, which amounted to approximately 0.43%, as gold lost about $10 of its value at the end of yesterday’s session.
Oil declines as US inventories increase
Oil prices fell in early Asian trading on Wednesday, at a time when sector data showed a rise in crude and fuel inventories in the United States, indicating a possible weakness in demand, and caution prevailed in supply expectations ahead of a meeting of the OPEC + bloc next month.
Morgan Stanley adjusts its expectations for when the US rate cut step will be taken
The US investment bank, Morgan Stanley, revised its expectations regarding when the US Federal Reserve will begin cutting interest rates; Morgan Stanley expected that the US Central Bank would begin easing its tightening policy at the next September meeting, noting that the bank’s previous expectations indicated the start of reducing US interest rates at the July meeting.
In this regard, Morgan Stanley continued that the change in its expectations came against the backdrop of recent inflation data, which does not call for much optimism about the course of the US Federal Reserve’s monetary policy, as inflation has witnessed rapid growth since the beginning of 2024, which does not support the confidence of the US Federal Reserve to begin reducing interest rates on... Near term.
In a related context, Bank of America said that the US Federal Reserve was aware of the recent inflation data developments, and took them into account during its meeting held last Wednesday, indicating that the central bank had moved to a policy of waiting and monitoring economic developments (especially with regard to the inflation rate). at present.
The Governor of the Bank of Japan talks about the yen's fluctuations and their impact on monetary policy
Bank of Japan Governor Kazuo Ueda spoke before the Japanese parliament on Tuesday morning, warning of the possible response of monetary policy to the effects of violent movements in the foreign exchange market, stressing that he is closely monitoring the fluctuations of the Japanese yen at the present time.
In addition, the Governor of the Bank of Japan touched on the following points:
-Monetary policy aims to influence inflation movements, not the Japanese yen.
-The Bank of Japan will analyze the impact of the yen's movements on the economy.
-Fluctuations in the foreign exchange market may have a strong impact on the economy and price levels; Therefore, the impact of turmoil on the Forex market may be more serious than in the past.
-The Bank of Japan does not seek to control forex market movements directly through monetary policy, but the Bank of Japan may respond if a weaker yen affects the inflation trend.
-A weak yen will increase import costs, which will affect the economy, especially demand.
-The Bank of Japan expects inflation to gradually move towards the 2% level.
What are the reasons for the rise in the US dollar index during market trading?
The US dollar index witnessed a noticeable rise during global market trading on Wednesday, supported by a rise in US bond yields, as well as tough statements by some members of the US Federal Reserve regarding monetary policy. This comes as markets await the release of US unemployment claims data for last week ending May 3, which It may have an impact on upcoming US dollar trades.
The US Federal Reserve surprises the markets again and does not rule out raising interest rates again!
Minneapolis Fed President Neel Kashkari said the central bank will likely keep interest rates the same "for an extended period of time" until officials are sure inflation is on track toward their target.
In an article published earlier Tuesday, the head of the Federal Reserve Bank of Minneapolis said the latest inflation data raises questions about whether monetary policy is restrictive enough to return inflation to 2%, a rate that policymakers see as the sweet spot in the economy. healthy