Talking about banks, Powell said that the situation was under control and that Fed would not have to raise rates as much as previously expected.
Powe
Talking about banks, Powell said that the situation was under control and that Fed would not have to raise rates as much as previously expected.
Powell also noted that the situation in the labor market was playing an important role in the current inflation.
According to FedWatch Tool, the probability of a rate hike at the next Fed meeting in June declined after Powell’s comments. Currently, there is a 28.9% probability of a 25 bps rate hike. Traders expect that Fed will cut the federal funds rate from 500 – 525 bps to 450 – 475 bps by the end of the year.
Gold Rebounds From Multi-Week Lows
Gold rebounded towards the $1975 level as traders reacted to the comments from Fed Chair. Powell’s comments on the banking system served as the key catalyst for the move as the probability of a rate hike decreased.
U.S. Dollar Index declined towards the 103 level as Treasury yields pulled back from session highs. Traders bet on a less hawkish Fed.
SP500 pulled back below the 4200 level. Traders react to the recent reports indicating that debt ceiling negotiations were paused.
For a look at all of today’s economic events, check out our economic calendar.
amp.fxempire.com
Traders Bet Against Fed Rate Hikes After Powell’s Comments
Talking about banks, Powell said that the situation was under control and that Fed would not have to raise rates as much as previously expected. Powe
Talking about banks, Powell said that the situation was under control and that Fed would not have to raise rates as much as previously expected.
Powell also noted that the situation in the labor market was playing an important role in the current inflation.
According to FedWatch Tool, the probability of a rate hike at the next Fed meeting in June declined after Powell’s comments. Currently, there is a 28.9% probability of a 25 bps rate hike. Traders expect that Fed will cut the federal funds rate from 500 – 525 bps to 450 – 475 bps by the end of the year.
Gold Rebounds From Multi-Week Lows
Gold rebounded towards the $1975 level as traders reacted to the comments from Fed Chair. Powell’s comments on the banking system served as the key catalyst for the move as the probability of a rate hike decreased.
U.S. Dollar Index declined towards the 103 level as Treasury yields pulled back from session highs. Traders bet on a less hawkish Fed.
SP500 pulled back below the 4200 level. Traders react to the recent reports indicating that debt ceiling negotiations were paused.
For a look at all of today’s economic events, check out our economic calendar.
amp.fxempire.com
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