US Fed member Waller spoke about the Fed's thinking a few hours ago, reiterating the usual message of the last few months – the Fed will not rush to cut rates and current conditions do not support cuts, but he also suggested that the prospect of any rate cut the hike is very remote.
➡️ FOMC member Waller spoke a few hours ago about the Fed's monetary policy. He basically gave the same message that the Fed has been spreading for a few months now. In summary: there will be no rush to cut rates, a rate hike is very unlikely and the current state of the economy does not justify a major rate cut.
➡️ The Japanese yen remains weak, but the USD/JPY currency pair it did not repeat its recent record high of just under 152 yen. Japanese financial officials will likely threaten intervention if ¥152 is tested again, but it seems likely that the price will not fall much, giving traders potential opportunities to trade in that range. Trend traders will still be interested in being long the USD/JPY and shorting the Japanese yen in general.
➡️ The lesser good cocoa continues to grow, once again closing at a new all-time high. The superfood has nearly tripled in value in the past year alone, with many analysts suggesting that supply-side shortages are at least partly responsible for the meteoric rise. Every year there is more and more demand for cocoa as it is coveted as a key ingredient for chocolate but also as a superfood in its own right. Trend traders will be interested in the long side, although with such high volatility and net gains, it could collapse at any time, so trend traders need to be careful to use a disciplined stop loss if they go long. In addition to cocoa futures, cocoa ETNs are available which may be more suitable for traders and retail investors.
➡️ Bitcoin is up again and trading above $70,000, not far from its recent record high of around $74,000, despite cryptocurrency funds seeing record outflows last week.
➡️ Gold keeps appearing bullish and it could test its recent all-time high in the next few days, although that is still far away. Also trend traders they will be interested in the long side. Yesterday spot gold recorded its highest daily close ever, close to $2,200, a price not higher than the record reached a few days ago.
➡️ There will be some impactful data releases later today:
- Canadian GDP, which is expected to show a month-on-month increase of 0.4% after remaining unchanged from the previous month.
- The final US GDP, which is expected to remain unchanged at an annualized rate of 3.2%.
- Pending Home Sales in the United States
- Consumer sentiment of measurement unit revised
Credit by DailyForex.com
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