Global stocks and precious metals closed last week in negative territory after Fed Chair Jerome Powell’s hawkish comments indicated higher interest rates in place for a longer time. While Powell said the September rate decision is still undecided as they wait for data but he made it clear that he expects rates to remain at levels that should slow the economy “for some time.”
The market currently expects that the central bank will raise the Fed funds futures rate by another 75 basis points in the September meeting. The Fed funds futures are showing odds of a 75bps hike in September now 70% vs 46.5% before Powell’s speech. Moving ahead to this week, the important economic events to watch are the series of inflation numbers from the Germany and Eurozone, the US employment report and consumer confidence data.
On the earnings front, the companies scheduled to release their last quarter financial results this week will be Chewy, Lululemon, Broadcom and HP.
Read the detailed weekly analysis here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-45