The narrative of maintaining interest rates at the current level until there is greater confidence for rate cuts was emphasized by the federal speakers Mester, Bostic, and Barkin. They also acknowledged the positive state of the labor market, while Bostic specifically addressed the issue of housing inflation. In addition, there were several data reports released yesterday.
Unemployment claims decreased to 222K from the previously revised figure of 232K, which was unexpectedly positive. The Philadelphia fed manufacturing index dropped to 4.5, although it is known to be volatile. Industrial production remained unchanged at 0%, with the previous month's figure also revised to 0.1%, aligning with the forecast. Overall, these data had minimal impact on the market.
The Dollar began trading lower, opening at approximately 104.2s before dropping to near 104.1s, which was close to the previous CPI lows. Subsequently, it rebounded from these levels and surged to 104.6s later in the day during the New York session, ultimately ending the daily session at 104.5s.
Gold initially opened at approximately 2386s and experienced significant upward movements, reaching 2397s during the Asian session. However, the subsequent sessions lacked substantial trading opportunities. The price fluctuations of gold were quite volatile, as it dropped to 2371s during the NY session and later rebounded to 2383s near the London close. Ultimately, gold concluded the daily session at 2377s.
Equities experienced a partial retracement of their previous gains. The Dow Jones index commenced trading at approximately 39919s and, after fluctuating, reached new intraday highs around 40000s. However, as the market reached its peak, sellers emerged, prompting buyers to take profits. Consequently, the US30 witnessed a decline to 39850s, ultimately concluding the daily session.
Summary:
The XXXUSD pairs experienced significant volatility, yet lacked sufficient volume on either side to sustain the trend.
Exercise greater patience when trading under these market conditions.