Daily Market Report
Powell added during the press conference that more efforts are needed to bring down inflation to desired levels and if the economy evolves as anticipated, the target of the fed funds rate is seen at 5.6% by the end of the year. Finally, the odds for a quarter-point rate hike in July’s meeting are sitting at 61%, however, Fed Chair Powell indicated that no decision was made yet on next month’s monetary policy which brings back uncertainty to the markets.
Looking at the reaction in the U.S. market, the major stock market indexes recovered from early losses. The Nasdaq closed 0.39% higher supported by NVIDIA and AMD’s positive performance, the S&P500 registered small gains of 0.08% while the Dow fell 0.68%.
In the FX market, the U.S. Dollar closed lower against its major peers, however, the Greenback is expected to remain steady after the FED kept the door open for more rate hikes later this year. Moreover, Gold couldn’t hold its previous gains as the yellow metal selling pressure is still intact, the focus today will be on the 1935-1930 support zone. A break below it should trigger another sell-off towards the next support level located at 1918 followed by 1907 in extension.
On the flip side, a daily close above the $1960 barrier is likely to increase the odds of a bullish reversal in the near term.