Dow hits record after Fed minutes

It’s not that I’m so smart; it’s just that I stay with problems longer. - Albert Einstein

 

 

 

HEADLINES

 

 

 

• FOMC minutes say most participants judged conditions for rate hike could be met soon
• Dollar dips after ADP data with Fed minutes on tap
• Gold futures tally back-to-back session gains, then retreat after FOMC minutes
• Oil Prices Stay up Despite Largest Gasoline Build in 21 Months
• Dow hits record high on cyclical boost ahead of Fed minutes; tech falls
• EUR/USD points to losses continuing after lengthy consolidation period – Scotiabank

 

 

 

FOREX

 

 

 

FOMC minutes say most participants judged conditions for rate hike could be met soon

 

"Most participants judged conditions for a rate hike could be met relatively soon if the recent pace of labor market improvements continued."

"Participants noted that, given outlooks for the economy, labor market, and inflation, it may become warranted to increase the federal funds rate sooner or at a faster pace than participants had earlier anticipated."

 

Dollar dips after ADP data with Fed minutes on tap

 

The dollar dipped on Wednesday after a stronger-than-expected report on the labor market and ahead of minutes from the Federal Reserve's December meeting, as investors seek signs on when the central bank will begin to hike interest rates.

Private payrolls jumped by 807,000 jobs in December, according to the ADP National Employment Report, well above the expectation for 400,000 jobs, although climbing COVID-19 cases could slow momentum in the labor market.

 

 

 

COMMODITIES

 

 

 

Gold futures tally back-to-back session gains, then retreat after FOMC minutes

 

Gold futures climbed Wednesday, with prices up a second session in a row, finding support from a “flight to safety” as cases of the omicron variant grow and benchmark U.S. stock indexes and the dollar weakened.

In electronic trading, however, prices pulled back from the settlement following the release of the Federal Open Market Committee minutes from the December meeting, which came about a half hour after gold futures prices settled Wednesday.

The minutes showed that officials generally thought rate hikes could come sooner, at a faster pace then they previously expected.

 

Oil Prices Stay up Despite Largest Gasoline Build in 21 Months

 

Oil prices were up for a third day in a row on Wednesday as promising monthly U.S. jobs data due later in the week offset unexpectedly large builds in fuel stockpiles that would have typically driven the market lower.

 

 

 

STOCKS

 

 

 

Dow hits record high on cyclical boost ahead of Fed minutes; tech falls

 

The Dow hit a record high on Wednesday as investors swapped technology stocks for economy-linked cyclicals that stand to benefit from a high interest rate environment, ahead of minutes from the Federal Reserve's December meeting.

Seven of the 11 major S&P sectors advanced in early afternoon trading with value-oriented energy, financials and materials shares leading the pack. Growth shares were also under pressure from a recent rise in U.S. Treasury yields, sparked by growing angst towards the prospect of interest rate hikes by the Fed to curb inflation.

 

 

 

ANALYSIS

 

 

 

EUR/USD points to losses continuing after lengthy consolidation period – Scotiabank

 

“EUR/USD remains in its sideways trajectory since late-November while the broad technical picture (since last May) remains bearish and points to losses continuing after this lengthy consolidation period.”

“Support after 1.1270/80 is the mid-figure zone followed by ~1.1220.”

“Resistance is 1.1340/60/80; note 50-day MA at 1.1364.”

 

 

 

CHART

 

 

 

British pound / US dollar – Daily Candlesticks

Source: GKFX Prime Metatrader 4

GBP/USD is testing the upper line in a long down-sloping channel and the 1.36 resistance. - Prepared by Trading Writers*

 

 

 

CALENDAR

 

 

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

 

SOURCE

 

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/eur-usd-points-to-losses-continuing-after-lengthy-consolidation-period-scotiabank-202201051420
https://www.fxstreet.com/news/breaking-fomc-minutes-say-most-participants-judged-conditions-for-rate-hike-could-be-met-soon-202201051903
https://www.investing.com/news/commodities-news/us-oil-stockpiles-fell-by-21-million-barrels-last-week-eia-2731240
https://finance.yahoo.com/m/a904d5e4-3fb5-355d-85c1-ad1fb60eb0e7/gold-futures-tally.html?.tsrc=fin-srch
https://finance.yahoo.com/news/forex-dollar-dips-adp-data-160726940.html?.tsrc=fin-srch