Weak US data reduces likelihood of rate hikes and boosts metal prices
US data released today turned out to be a disappointment - JOLTS figures are below 9 million, and Conference Board consumer sentiment for August has dropped well below expectations and the previous level. This is a kind of data the Fed would want to see when deciding to keep interest rates unchanged.
Powell maintained the same tone as before during his recent speech at Jackson Hole, emphasizing the need to wait for more data, including JOLTS. These data are coming out weak, which sets the stage for a lackluster Non-Farm Payrolls (NFP) reading for August. We will get to know this data this Friday.
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Open real account TRY DEMO Download mobile app Download mobile appWe are observing significant increases in bond prices (TNOTE) following release of US data today, leading to a decrease in yields. The dollar is reacting to this, and EURUSD is now clearly trading above 1.0800. Gold has quickly risen back above $1930 per ounce, while silver is approaching the $25 per ounce mark. Silver experienced a strong upward surge last week and has risen by over 10% from its recent low. The $25 per ounce range is a local peak from mid-July.
Source: xStation5
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