The US dollar records strong declines for the second session in a row, with the opening of the European session today, Thursday the first of December, as the general index of the US dollar tested levels of 105.25, recording declines of 0.70% in the Asian session, after losing more than 1% from its high level yesterday, Wednesday.
Jerome Powell’s statements and his assertion of slowing down the pace of raising interest rates for the US Federal Reserve in December, yesterday, Wednesday, negatively affected the movements of the US dollar and supported the rises of US stocks and the prices of metals and gold.
US Federal Reserve Chairman Jerome Powell in Washington, and in his latest economic forecasts for inflation and the labor market, indicated that the inflation figures for October came as a surprise, and that the Fed’s slowdown in the current rate of hike would be good for balancing economic risks, especially after raising interest rates by 75 basis points for the fourth time in a row in early November, to reach interest rates its highest level since January 2008.
Market estimates according to futures markets, according to the Fed Watch tool from CME, are now pricing in certainty that the US Federal Reserve will raise interest rates by 50 basis points at its next meeting on December 14th, and that the rate hike will return to a quarter of a point in February and March.
The markets are anticipating, during today’s Thursday’s session, the Fed’s favorite inflation indicator represented by consumer spending (PCE) to reflect the extent of the decline in inflation, as estimates indicate that the annual index fell to 6.1% in November.
The yellow metal, after gains of more than 1.5% yesterday, Wednesday, benefiting from these statements, is rising by about 0.56% today, Thursday, and trading at $1778 an ounce.
29/12/2024
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