Gold’s Upside Is Likely Limited, Yesterday’s Speech From The Fed Chair Powell Was Hawkish
Aa
Share
Another hawkish speech from the Federal Reserve (Fed) Chair Jerome Powell turned into a risk rally yesterday. Equities gained, and the bond yields fell.
Fed
Yet, yesterday’s speech from the Fed Chair Powell was hawkish. He said that the Fed may hike the rates more than what’s priced in if the jobs market remains unexpectedly strong.
Stocks market
The S&P500 still eased when Powell said they need ‘substantial evidence’ that inflation slowed, but finally, the index erased gains and ended the session by 1.30% higher. Nasdaq jumped more than 2%. The US 2-year yield eased and the US dollar first jumped, then eased.
Zoom and Microsoft
In individual stock news, Zoom jumped 10% on news that it will lay off 15% of its workforce, while Microsoft jumped 4% after the company unveiled its new ChatGPT-powered Bing!
Forex
The EURUSD tipped a toe below its latest bullish trend base, and below its 50-DMA yesterday, and the pair is just at the edge of bullish trend again this morning, with no guarantee that it won’t slide further.
Cable rebounded before hitting its 200-DMA, at 1.1950, and is back above the 1.20 mark this morning.
Read next: The Decline In Tech Valuations Continues To Hit SoftBank| FXMAG.COM
Curde Oil
BP shares price jumped nearly 8% to above our mid-term 500p target, after reporting report profit, dividend raise and share buyback, while crude oil jumped more than 4% as API revealed a 2-mio-barrel decline in US stockpiles.
Watch the full episode to find out more!
- 0:00 Intro
- 0:28 Jerome says one thing, investors hear another thing
- 1:36 Market update
- 3:30 One bad, two good news
- 5:02 Zoom jumps 10%
- 5:37 Why Microsoft’s AI could be longer-lived than metaverse craze?
- 7.27 FX update
- 8:28 BP rallies on profits, oil jumps on US inventories
- 9:37 Gold’s upside is likely limited
Ipek Ozkardeskaya
Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.
#Powell #speech #inflation #jobs #USD #EUR #GBP #XAU #crude #oil #earnings #Dell #Zoom #layoffs #Microsoft #ChatGPT #Bing #SPX #Dow #Nasdaq #investing #trading #equities #stocks #cryptocurrencies #FX #bonds #markets #news #Swissquote #MarketTalk #marketanalysis #marketcommentary
_____
Learn the fundamentals of trading at your own pace with Swissquote's Education Center. Discover our online courses, webinars and eBooks: https://swq.ch/wr
_____
Discover our brand and philosophy: https://swq.ch/wq
Learn more about our employees: https://swq.ch/d5
_____
Let's stay connected: LinkedIn: https://swq.ch/cH
