The US yields corrected lower Wednesday, boosting gold slightly as the metal is trying to recover from this week’s brutal sell-off.US equities also declined this week, although losses seem limited so far as dip buyers have taken that opportunity to add to their long positions. 

Oil rallied sharply as Biden promised to take some (legal) action against high oil prices (like the Fed has nothing to do with it..).

Powell’s nomination “generated another round of USD buying, as the risk of the more dovish Lael Brainard taking over was priced out (she was, however, named Vice-Chair) and markets reinforced their views around a first Fed hike by mid-2022,” said analysts at ING in a note.

The EURUSD trades at the lowest level since summer 2020, and the euro remains under pressure due to the ultra dovish ECB and hawkish Fed expectations.

Later in the day, US durable goods orders are due, expected to improve notably in October. Additionally, the US GDP for the third quarter will be released, likely staying near the Q2’s 2.0% annualized. 

Furthermore, US personal spending and income data are on the agenda, including jobless claims and new home sales for October.

The day will be finished with the FOMC minutes from the latest Fed’s monetary policy meeting, where the central bank decided to start tapering its bond purchases. 



About Author

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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