Forex Today: Fed Officials See Rates Above 5% Soon

Yesterday’s risk-on sentiment in the markets takes a small knock as two Fed officials expect to see rates above 5% by July 2023.


  1. Stocks and risk assets have faced a small setback after an earlier rise Monday as two Fed members make hawkish remarks emphasizing that they expect to see rates above 5% soon. The price drops were not very large so it seems quite likely the market will shrug off these remarks later today and continue with the earlier risk-on rally.
  2. The long-term bullish trend in precious metals continues, with the price of spot Gold rising to another 6-month high above $1879. The price of spot Silver is also bullish, but less so. In the commodities sector, Copper and Cocoa have also made bullish breakouts to new multi-month highs. All these assets are attractive to long-term trend traders in the long direction right now, as higher prices here are likely over the coming days.
  3. In the Forex market, we currently see more in-trend movement in the major currency pairs, especially in the EUR/USD currency pair and less drastically in the USD/JPY currency pair. The strong long-term technical trend against the US Dollar remains, with the Euro and the Aussie making multi-month highs against the greenback.  Earlier risk-on sentiment is helping weaken the US Dollar, which is the weakest major currency, while the Euro is currently the strongest.
  4. The price of WTI Crude Oil is falling again, as the commodities remains within a well-defined long-term bearish trend.
  5. There are initial signs that the Bank of Japan may have finally succeeded in its long-term efforts to reflate the Japanese economy, with inflation in the Tokyo area reaching 4% for the first time since 1982.
  6. There will be a release of Australian CPI (inflation) data today.
  7. Daily new global coronavirus cases decreased last week for the third consecutive week.  
  8. It is estimated that 69.1% of the world’s population has received at least one dose of a coronavirus vaccination.
  9. Total confirmed new coronavirus cases worldwide stand at over 669 million with an average case fatality rate of 1.00%. 
  10. The rate of new coronavirus infections appears to now be significantly increasing only in China, New Zealand, the Philippines, and Taiwan. A Chinese official in one province implied yesterday that over 88 million people had been infected in just the past few weeks.
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.