Markets are awaiting the release later today of the minutes of the most recent FOMC meeting, in the hope it will explain why the Fed expressed concerns about lingering inflation.
- The FOMC meeting minutes will be released later today. It will be closely read for clues about inflation concerns, as inflation has been falling over recent months. Dovish language on inflation could cause the US Dollar to sell off as it would make the pace and amount of rate hikes be likely to lessen.
- For the fourth day, the Bank of Japan announced unscheduled and unlimited bond purchases. This sent the Yen a bit higher after its losses yesterday.
- In The Forex market, there was a strong spike in favour of the US Dollar yesterday during the London session, probably due to start of year flow. There is a long-term trend against the Dollar, and it can be expected to resume now as momentum again seems to be shifting against the greenback.
- The long-term bullish trend in precious metals continues, with the price of spot Gold rising and threatening to make another 6-month high. The price of spot Silver is also bullish, but less so. Both Gold and are attractive to long-term trend traders in the long direction right now, as higher prices here are likely over the coming days.
- In the Forex market, the Australian Dollar is currently the strongest currency while the Euro and the British Pound look to be the weakest. The USD/JPY currency pair and the EUR/USD currency pair remain within valid long-term trends, and trend traders will be looking to trade both major currency pairs.
- There will be a release of Swiss CPI (inflation) data today.
- In the USA, there will be releases of US ISM Manufacturing PMI data and US JOLTS Job Openings data.
- Daily new global coronavirus cases fell last week for the first time in two months.
- It is estimated that 69.1% of the world’s population has received at least one dose of a coronavirus vaccination.
- Total confirmed new coronavirus cases worldwide stand at over 666.1 million with an average case fatality rate of 1.01%. The number of new cases has fallen globally over the past 2 weeks.
- The rate of new coronavirus infections appears to now be significantly increasing only in China, the Philippines, and Taiwan.