The miracle did not happen. On Wednesday, the American market, in spite of everything, went to conquer new peaks. The S&P500 index showed a new maximum of 3475. That confidence has to be backed up by something, because macro-reporting shows otherwise.
It is already clear that on the sidelines of the Fed a new monetary policy program is being developed, which will be based on the acceleration of the inflation target in a short time. The last ten years have shown that it is much harder to stimulate inflation than to contain it. So very soon the Fed will present us with completely new rules of the game.
Perhaps investors understand that serious changes are going to happen in the economy, so they are working ahead of the curve and pushing the indices up. Although, on the other hand, the consumer confidence index is at its lowest level since the pandemic, and the U.S. GDP is forecast to fall by 32% in the quarter. These figures do not add up to the current growth at all.
AUD/USD pair came close to the level of 0.7250, which is a weekly SMA200. The Australian dollar feels good because of the progress in negotiations between the U.S. and China. After all, Australia is one of the most important suppliers of raw materials to China.
Now the currency market is waiting for the speech of the head of the Federal Reserve, who should reveal certain cards for future actions and give a hint to investors. The trading range is narrowing, and only after statements can decisions be made.
Gold is under pressure throughout the week. Given the endless growth of risk assets, as well as waiting for the speech of the head of the Federal Reserve presses on the unprofitable metal. In the coming days, there will be more information as to where the Fed will go. Investors will be able to analyze and find the right way forward. Although, it is already clear that gold is still gold, which will always be in demand.
What’s waiting for us today?
14.30 US GDP per quarter.
14.30 Number of initial applications for unemployment benefits in the United States.
16.30 Address by US Federal Reserve Chief D. Powell
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