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USD gains after Fed minutes

“The wisest rule in investment is: when others are selling, buy. When others are buying, sell.” Jonathan Sacks

 

 

HEADLINES

 

 

  • Dollar near three-month high after Fed m
  • Minutes reaffirm taper timeline
  • ECB Official: Policymakers agree to raise inflation goal to 2% – Bloomberg
  • AUD/USD bears attack yearly low near 0.7450 on RBA’s Lowe
  • Oil Down, Investors Await Further Signs of OPEC+ Production Policy
  • Gold steady above $1,800 per ounce as lower yields counter stronger dollar
  • S&P 500, Nasdaq post record closing highs after Fed minutes
  • Ether Outperforms Bitcoin as Crypto Sentiment Improves

 

FOREX

 

 

Dollar near three-month high after Fed minutes reaffirm taper timeline

 

 

The dollar traded near its highest in three months versus major peers on Thursday after minutes of the Federal Reserve's June policy meeting confirmed the world's biggest central bank is moving toward tapering its asset purchases as soon as this year.

"Various participants" at the session still felt conditions for curbing the bond-buying that is supplying markets with cash would be "met somewhat earlier than they had anticipated," while others saw a less clear signal from incoming data, the minutes showed.

 

 

ECB Official: Policymakers agree to raise inflation goal to 2% – Bloomberg

 

 

Bloomberg cites anonymous officials familiar with the matter to say, “European Central Bank policy makers have agreed to raise their inflation goal to 2% and allow room to overshoot it when needed.”

“The decision marks a significant change from the previous target of ‘below, but close to, 2%,’ which some policy makers felt was too vague,” the news added, “The consensus emerged at a special meeting on Tuesday and Wednesday to conclude the ECB’s first strategy review in almost 20 years.”

 

 

AUD/USD bears attack yearly low near 0.7450 on RBA’s Lowe

 

 

AUD/USD remains on the back foot for the third consecutive day… around 0.7455, as RBA Governor Philip Lowe exerts additional downside pressure during early Thursday. In doing so, the pair [tests its] weekly low, on the way to its yearly trough, as covid woes also [weigh down] the pair.

 

 

COMMODITIES

 

 

Oil Down, Investors Await Further Signs of OPEC+ Production Policy

 

 

Oil was down Thursday morning in Asia for a third straight session as investors are keeping an eye on the ongoing production dispute between Saudi Arabia and the United Arab Emirates (UAE) that affects global fuel supply.

 

 

Gold steady above $1,800 per ounce as lower yields counter stronger dollar

 

 

Gold held steady on Thursday as lower U.S. Treasury yields countered a stronger dollar after minutes from the Federal Reserve’s last meeting showed that the central bank is moving towards tapering its asset purchases as soon as this year.

 

 

STOCKS

 

 

S&P 500, Nasdaq post record closing highs after Fed minutes

 

 

U.S. stocks ended higher on Wednesday and the S&P 500 and Nasdaq notched record closing highs after minutes from the last Federal Reserve meeting indicated officials may not be ready yet to move on tightening policy.

 

 

CRYPTO

 

 

Ether Outperforms Bitcoin as Crypto Sentiment Improves

 

 

Ether is attempting to break above the 50-day moving average for the first time since March.  Cryptocurrencies were mostly higher on Wednesday as bullish sentiment improves. Bitcoin was trading around $34,000 at press time, but is still down about 1% over the past week. Ether, however, has been outperforming bitcoin and is up about 3% over the past week.

 

 

ANALYSIS

 

 

Odds of a Fed rate hike before 2024 not high – Goldman Sachs

 

 

Analysts at Goldman Sachs offer their take on the timing of a Fed rate hike lift-off after stating that the FOMC minutes noted that the Committee will "begin to discuss" plans for tapering "in coming meetings."

“The probability that the first hike will come before 2024 is still only modestly above 50%. Our forecasts for both growth and inflation in 2022-2023 are already below the FOMC median.”

 

 

CHART

 

 

Gold – 4 hour Candlesticks

 

 

Source: GKFX Prime Metatrader 4

XAU/USD is trapped between the 20 DMA and recently broken resistance. RSI reaching overbought shows a bullish momentum shift, but a move down to a demand area near 1780 could happen first- Prepared by Trading Writers*

 

 

CALENDAR

 

*Times in GMT

 

SOURCE

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/aud-usd-bears-attack-yearly-low-near-07450-on-rbas-lowe-202107080240
https://www.fxstreet.com/news/odds-of-a-fed-rate-hike-before-2024-not-high-goldman-sachs-202107080228
https://www.fxstreet.com/news/ecb-official-policymakers-agree-to-raise-inflation-goal-to-2-and-allow-overshoot-bloomberg-202107080008
https://www.investing.com/news/economy/dollar-near-threemonth-high-after-fed-minutes-reaffirm-taper-timeline-2552398
https://www.investing.com/news/commodities-news/oil-down-investors-await-further-signs-of-opec-production-policy-2552411
https://www.reuters.com/business/sp-500-nasdaq-post-record-closing-highs-after-fed-minutes-2021-07-07/
https://www.coindesk.com/market-wrap-ether-outperform-bitcoin-sentiment
https://www.cnbc.com/2021/07/08/gold-markets-dollar-federal-reserve-european-central-bank.html

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