GOLD
Gold prices remained largely unchanged in early Wednesday trading, finding support above the $2,300 level as traders adopt a wait-and-see approach ahead of key data releases. With June's US inflation numbers and the conclusion of this month’s
Federal Reserve meeting looming, today is a pivotal day for traders. Most expect the Fed to leave rates unchanged, but inflation is a different story. Despite the consensus forecast of a modest decline, uncertainty lingers.
An unexpected CPI reading, especially on the upside, could trigger significant dollar volatility as traders would reassess US rate cut expectations, likely influencing gold prices accordingly.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
European equities opened higher on Wednesday, following another rebound over key support levels, ahead of today's US CPI release and the FOMC's decision on rates. Market sentiment was on a shy rise this morning after no significant surprise came out of CPI data from Germany, while price pressure in China continued to slow down.
All eyes will be on the other side of the Atlantic today as traders brace for a crucial US CPI print, widely expected to show decreasing inflationary pressure on a MoM basis. Even if investors don't expect anything major from the FOMC's rate decision, they will cautiously scrutinise Fed Chairman Powell's wording during his press conference to assess the central bank's projection over the next quarters.
Monetary policies remain the primary market driver for equity traders, and most investors have tamed their dovish expectations over the past few months. This situation could lead to sharp bullish price action over many benchmarks if today's data were to display a better-than-expected inflationary environment. The STOXX-50 trades higher, close to the 5,000pts mark, with almost all sectors rising and top performers among financial and basic material shares.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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