Money markets have now pushed up ECB rate hike expectations
Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!
- Gold has fallen 0.81% so far on Monday after Fed Powell's speech on Friday was more hawkish than the market expected. At the Jackson Hole central banking conference in Wyoming, Powell said the Fed will raise rates as high as needed to restrict growth and would keep them there"for some time" to bring down inflation that is running at more than three times the Fed's 2% goal.
In addition to this, Euro Zone money markets are now pricing in a 67% chance of a 75 bps ECB rate hike in September, up from 48% on Friday. This comes after comments from ECB members who are now looking at a 50-75 bps rise next month. ECB's Kazaks said"Frontloading rate hikes is a reasonable policy choice," Latvia's central bank chief noted"We should be open to discussing both 50 and 75 basis points as possible moves.
The daily chart below shows the price moving toward the previous wave low. The price hit $1681.00/oz back in late July and now the yellow metal is moving toward the level once again. The fact that yields are rising is offering another safe haven to market participants and the U.S. 2-year yield has now reached its highest level since November 2007. If there is to be some support at the red shaded area look out for the trendline break to the upside but for now, downside levels are in focus.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
BTC, ETH have had a difficult 24 hours; Fed Chair Powell to blame?The cryptocurrency market declined with the broader financial markets as of 26 August. This decline followed the hawkish remarks made by Federal Reserve Chair Jerome Powell at the Fed’s Jackson Hole, Wyoming economic conference on 26 August. The S&P 500 index fell by 2.15%, the Nasdaq posted a 2.7% decline, and the Dow Jones Industrial […]
Read more »
Gold and silver move lower heading into the European open(Kitco News) - Following the hawkish rhetoric last week from Powell gold has started this week on the back foot. The yellow metal is 0.79% lower at the start of the session. Silver is also struggling and trades 1.65% lower at $18.57/oz. Elsewhere in the commodities complex, copper (-2.74%) has also dropped but spot WTI is 0.46% in the black.
Read more »
Global shares fall after Fed rate comments, Wall Street dropGlobal shares declined Monday after the chairman of the U.S. Federal Reserve indicated high interest rates will continue for some time to curb inflation.
Read more »
Rare type of dolphin calf found ill, improves with tube-fed milk, helping handsAn Irrawaddy dolphin calf, considered a vulnerable species by International Union for Conservation of Nature, was found sick and almost drowning in a tidal pool on Thailand's shore, and is now being cared for.
Read more »
David Rosenberg: The bear market rally is unravelling — here’s whyRecession bear markets don’t end until the tail end of the Fed easing cycle, which is increasingly looking like a 2024 event. Read more.
Read more »