The Stock Markets Are Shining and The Dollar Is Paying the Price

The minutes of the latest Fed meeting on Wednesday, November 23, showed that most of the Fed’s officials support slowing the rate hike soon.

Reflecting statements that multiple officials have made over the past several weeks, the meeting summary pointed to smaller rate hikes coming. Markets widely expect the rate-setting Federal Open Market Committee to step down to a 0.5 percentage point increase in December, following four straight 0.75 percentage point hikes.

Officials said they still see few signs of inflation abating. However, some committee members expressed concern about risks to the financial system should the Fed continue to press forward at the same aggressive pace.

US stocks closed higher on Wednesday, November 23rd, for the second day in a row, as the Fed hinted at slowing rate hikes soon.

Unemployment claims in America increased by about 17 thousand to 240 thousand during the week ending on November 19th.

Note:

Due to thanksgiving holiday in the United States, there will be an early closing of most of the assets traded.

Dollar index (USDX)

The US dollar index fell by 0.9% since the majority of the Fed’s members in the November meeting believed that a slowdown in the pace of interest rate hikes will likely remain appropriate.

Fed members also noted that the labor market remains strong, but many noted initial signs that it may be slowly moving towards a better balance between supply and demand.

Technically, the US dollar is expected to decline with the continuation of the negative technical signs related to it, despite the expected correction due to its hold on and its attempt to test the support levels at 105.55.

Pivot point: 106.35

British Pound (GBPUSD)

The British Pound rose, supported by the decline of the US dollar on Wednesday, November 23, as most of the Fed’s members showed that they support slowing the pace of rate hikes soon.

The Sterling pound stabilizes above its pivot point at 1.2000, supported by the dollar’s decline.

Pivot point: 1.2000

Spot Gold (XAUUSD)

Gold futures closed higher on Wednesday, November 23, as investors watched US economic data showing deteriorating business conditions, indicating slowing economic growth.

At the close of trading, gold futures contracts (December contract) rose by $5.70, or 0.3%, to $1,745.60 an ounce.

The yellow metal received support from the decline of the US dollar, which fell by 0.9% and those helped increase the attractiveness of gold to holders of other currencies.

Pivot point: 1,742

US Crude (USOUSD)

Oil prices declined at the close of trading on Wednesday, November 23rd, affected by press reports stating that the European Union talks on setting a ceiling for Russian oil prices have stalled.

 Upon settlement, Brent crude futures fell by $2.95 to $85.41 a barrel, and US West Texas Intermediate crude futures fell by $3 to $77.94 a barrel.

 The data released by the US Energy Information Administration today revealed a decline in US oil inventories by about 3.7 million barrels in the week ending on November 18, to 431.7 million barrels.

Pivot point: 78.70