Investors waiting for CPI in US
2022.12.13 08:26
Budrigannews.com – The day of reckoning for the Federal Reserve has arrived! Has their strategy been sufficient to bring expansion extensively down without causing a downturn? Today’s focus will be on US inflation numbers. Both the and are included in this. If the figures for predicted inflation are off by more than 1%, then high inflation is to be expected.
It is anticipated that the monthly Core Consumer Price Index will remain at 0.3 percent and that the annual inflation rate will decrease to 7.3 percent. The rate of inflation in the United States peaked at 9.1% this year, but it has not fallen as quickly as the Federal Reserve would have liked. The Fed’s target inflation rate is exceeded by more than three times. Over the next 48 hours, analysts anticipate higher levels of volatility for the stocks and.
To Breakout in Gold?
Gold traders must keep an eye on the next 48 hours because of the relationship between gold and the US dollar. Economic stability, the risk profile of the market, and the performance of other safe-haven assets like the bond market are all correlated with gold’s price.
The most recent UK economic data indicates that safe-haven assets will be needed in 2023. The highest since March 2021 was 30,500 in the UK. Additionally, the reached a four-month high. Multiple strikes by airport workers, healthcare workers, rail workers, and ports, according to economists, will put pressure on the UK economy in December. In addition, the breakout that occurred this morning at $1,786 and produced a “higher high” was the primary focus of investors’ attention.
However, traders should also keep in mind that the price previously formed a bearish “head and shoulder” price pattern. Therefore, traders should exercise caution if the price does not return to the prior range. Depending on the timeframe, the price is currently receiving mixed signals.
The short positions in the market continue to be more than twice as many as the bullish positions, as stated by the US Commodity Futures Trading Commission. Despite this, the price will be primarily affected by current inflation rates.
Cryptocurrency Market – Bankman-Fried Arrested remains within the established price range, and any attempts to break out simply brought the price back down to the previous range. The most recent development in the market is that the United States requested Sam Bankman-Fried’s arrest.
Experts believe that this is good news for the cryptocurrency market because it demonstrates that authorities will not tolerate financial negligence and mismanagement in the sector. Experts believe that this will keep crypto exchanges motivated to self-regulate and implement additional safety measures. This might boost market confidence in the long run, but it might not immediately affect the price.
Despite rising during this morning’s futures market, the price of is once again at Friday’s previous resistance levels. Over the past week, the price has mostly formed bullish days, but each day has shown signs of sellers. Currently, technical analysis indicates a bullish breakout; however, traders must keep an eye on inflation and forward guidance.
Over the past month, most economists have said that the Fed will probably be less strict in December. This makes sense because the interest rate is already higher than 4% and is high enough to reduce inflation and demand. Also, the central bank doesn’t want to be blamed for making the economy unstable. In addition, the regulator has noted that supply and demand issues are the root causes of inflation.
More Investors sell dollars despite strong data
The Federal Reserve will confirm both its quarterly economic projections and its rate decision. The report, which is only published once every four years, has the potential to affect the market’s risk appetite and sentiment. Investors will also be looking at the Chairmen’s “forward guidance” in addition to this. Traders specifically want to know when the Fed will stop raising interest rates. Analysts are currently attempting to determine whether the Fed will stop hiking rates before reaching 5% or 5.5 percent.
