For a longer period of time investors are waiting for a clear signal that the Fed will make their first move on cutting rates, or so-called the pivoting moment. It happened during the previous week at Fed Chair Powell`s testimony to the Senate, where he noted that most probably the rates will be cut “at some point”. As markets are discounting immediately every available information, so they are currently actually pricing the boost of the US economy in some future period on the equity markets. On the opposite side, the cut in interest rates would imply a weaker US dollar, so the market is now pricing at which level the USD might be somewhere by the end of this year, through the price of gold.
The price of gold reached an all time highest level at $2.185. The RSI followed the move toward the higher grounds and moved to the level of 84, which is in technical analysis treated as highly overbought market side. Moving average of 50 days continued with stronger divergence from its MA200 counterpart, without any suggestions that the cross might occur anytime soon. As inflation rate for February and retail sales are set for a release during the week ahead, some further push to the upside is quite possible at this moment.
Important news to watch during the week ahead are:
USD: Inflation rate for February, PPI for February, Retail Sales for February, Michigan Consumer Sentiment preliminary for March.
The price of gold reached an all time highest level at $2.185. The RSI followed the move toward the higher grounds and moved to the level of 84, which is in technical analysis treated as highly overbought market side. Moving average of 50 days continued with stronger divergence from its MA200 counterpart, without any suggestions that the cross might occur anytime soon. As inflation rate for February and retail sales are set for a release during the week ahead, some further push to the upside is quite possible at this moment.
Important news to watch during the week ahead are:
USD: Inflation rate for February, PPI for February, Retail Sales for February, Michigan Consumer Sentiment preliminary for March.
