Federal Open Market Committee, a committee within the Federal Reserve System (the Fed), will release June’s FOMC meeting minutes later today. In the June meeting, FOMC raised interest rates by 75 bps, the biggest increase in three decades.
A broad gauge of Asian share markets rose to the highest in 18 months on Monday as Chinese equities gained, while oil hovered near three-month highs on a combination of U.S. crude inventory drawdown’s, trade optimism and unrest in the Middle East.
On Monday, global benchmark Brent crude was up 0.18% to $68.28 per barrel, while U.S. West Texas Intermediate crude added 0.05% to $61.75, reversing an earlier decline. Oil’s gains followed news of U.S. airstrikes in Iraq and Syria against Kataib Hezbollah, an Iran-backed militia group. U.S. officials said Sunday that the attacks were successful, but warned that “additional actions” may be taken to defend U.S. interests.
The dollar was on the defensive on Monday in light year-end trading after suffering a setback in the previous session, as safe-haven demand for the greenback waned on hopes of a U.S.-China trade deal and renewed optimism about global growth. As the dollar fell out of favour, its index against six major currencies eased a shade to 96.810 following Friday’s 0.6% which was its biggest single-day percentage drop since June. The big gainers in recent weeks have been the risk-sensitive and commodity-linked currencies of Australia and New Zealand.
Gold has also turned bullish following news reports about US airstrikes in the Middle East at multiple locations across Iraq and Syria where Iran purportedly has stored weapons and munitions. The precious metal on Monday rose 0.33% to $1,515.40 per ounce on the spot market.
Good morning everyone, happy Monday. The U.S. dollar weakened across the board on Friday as optimism about the outlook for a U.S.-China trade deal lifted investors’ appetite for risk, sapping safe-haven demand for the greenback, in light end-year trading.
While markets will be a little light on, there is still some attention this week on the FOMC minutes that will be due for release on Friday. That meeting saw the Fed held rates steady and some more insight into their thinking will be welcomed.
In the US session, there is pending homes sales data but otherwise, all the attention is on the overall market sentiment, which as mentioned is strong at the moment.
GOLD: The yellow metal trading higher on Monday ahead of year-end. Gold has also turned bullish following news reports about US airstrikes in the Middle East at multiple locations across Iraq and Syria where Iran purportedly has stored weapons and munitions. The important levels to watch for today $1507 and $1518.
Quote of the day: As the New year approaches find inspiration around you, and motivation within you, to be all that you can be.
The Reserve Bank of Australia increased its benchmark interest rate from 0.5% to 1.35% on Tuesday and It is the third consecutive month in which the central bank has hiked rates.
Precious metals like gold and silver prices extended declines in early trading on Friday. The strong bearish sentiment fueled by fed Chairman Jerome Powell's hawkish stance on Wednesday encouraged dollar bulls and pressured metal prices lower.
Global markets remain volatile following the hawkish comments from the central bank chiefs during the European Central Bank's (ECB) annual forum in Portugal. The central bankers have warned that the era of low-interest rates and moderate inflation has come to an end.