UNITED STATES (VOP TODAY NEWS) — This week, precious metals traders will monitor the US dollar rate before the Fed meeting is forecast to clarify the future interest rate hike this year.
According to the forecasts of most analysts, on Wednesday, the Fed will keep its monetary policy unchanged as a result of its two-day meeting, and US central bank officials will update their forecasts for a further increase in interest rates.
In January, the Fed indicated that it would show patience with a further increase in interest rates amid fears of a slowdown in global economic growth.
On Friday, gold prices exceeded the psychologically important level of $ 1,300 amid a depreciation of the US dollar due to weak US economic data.
In February, US industrial output fell for the second month in a row, and business activity in the manufacturing sector of New York State was below forecasts. Published reports continued a series of weak US economic data and confirmed the correctness of the Fed’s low profile regarding further interest rate increases this year.
By the end of Friday’s trading, the US dollar index , which shows the purchasing power of the dollar against a trade-weighted basket of six major currencies, fell by 0.24% to 96.54. This is the most significant decline in the dollar index after the first week of December.
Dollar depreciation is a positive factor for assets traded in the dollar, making them cheaper for holders of other currencies.
By the end of Friday’s trading, gold futures rose 0.55% to $ 1302.25 on the COMEX division of the New York Mercantile Exchange.
Another factor in favor of the increase in gold prices was renewed optimism about the trade agreement between the United States and China.
“Although gold is primarily considered a defensive asset, its prices also strongly depend on the situation in emerging markets, the demand for which makes up more than half of the global demand for gold. In particular, this applies to China. The improved economic background and the rise in local currencies against the US dollar served as a positive signal for the demand for gold. This is especially true for China, where the demand for gold has remained weak in the past few years, when consumers have been more worried about economic forecasts, ”said Julius Baer analyst Karsten Menke.
By the end of Friday’s trading, silver futures rose 0.78% to $ 15.29 per troy ounce. Copper futures rose 0.57% to $ 2,908. For the week, copper has risen in price by 0.35%.
Monday, March 18
In the UK will be published a report on the level of inflation in house prices.
In the eurozone will report on the trade balance.
Tuesday, March 19
The Reserve Bank of Australia will publish minutes of the last meeting of the monetary policy committee.
In the UK will be published a report on employment.
The ZEW Institute will publish a report on consumer sentiment in Germany.
Wednesday, March 20
The UK will publish inflation data.
The Fed will publish a decision on monetary policy, and the head of the central bank, Jerome Powell, will hold a press conference on the results of the decision.
Thursday, March 21
The financial markets of Japan will be closed due to the holiday.
In New Zealand, will report on GDP growth in the fourth quarter.
In Australia, a monthly employment report will be published.
The National Bank of Switzerland will publish a decision on the current monetary policy. The head of the Swiss central bank will hold a press conference.
EU leaders will gather in Brussels to discuss Brexit.
The UK will publish a report on retail sales and public sector borrowing information. The Bank of England will announce its interest rate decision.
In the US, there are data on the number of initial applications for unemployment benefits and business activity in the manufacturing sector of Philadelphia.
Friday, March 22
In the euro zone will be published data on business activity in the private sector.
In Canada, will be published reports on the volume of retail sales and inflation.
The United States will complete the financial week with a report on the sales of homes on the secondary housing market of the United States.
This article is written and prepared by our foreign editors writing for VOP from different countries around the world – edited and published by VOP staff in our newsroom.
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