DOLLAR STEADY AHEAD OF CRISIS

Dollex will remain firm due to ongoing Middle East crisis while simultaneously the US economy stays strong, inflation is sticky and yields are firm.

BULL RUN OVER?

Investors are left pondering what catalysts are needed that could propel the market above its previous high, while being aware of the persisting risks and the market’s historic ability to overcome uncertainties over time.

BONDS IN TURMOIL

Recent gains in Treasury yields reflect investors’ realization of complexities due to surging inflation, rising crude oil prices and the Israel-Hamas conflict. The looming question is whether yields can climb higher and, if so, at what juncture higher yields might inflict significant damage on the economy.

US DOLLAR: AT CROSSROADS

US DOLLAR

Investors should stay vigilant, watch out for corporates’ outlook and commentary and monitor the above-mentioned key factors that could influence market sentiment and direction in the weeks ahead. Be prepared for continued volatility and sharp market movements in the coming weeks.

YEN UNDER PRESSURE

Yen’s susceptibility to short-selling due to low yields in Japan, coupled with its attractiveness for funding trades, will keep the USD/JPY above 145 in the medium term.

SILVER SIMPLIFIED

In the long term, like maybe in the second half of 2024, when the Fed changes its approach, there could be good times in store for gold and silver.

GOLD AFTER JACKSON HOLE

Given the current economic situation and gold staying much below $1,950 an ounce, it’s not certain if it will go up to $2,000 again in a hurry.

POWELL EXPECTED TO MAINTAIN HAWKISH STANCE

Gold, which is a precious metal often used for investing, is facing challenges. Traditionally the Gold prices moved up in times of uncertainty, inflationary pressure or distress. However the scene may not play out that way. Governments are quick to inject liquidity in such times. Therefore, given the current economic situation and gold staying much below $1,950 an ounce, it’s not certain if it will go up to $2,000 again in a hurry.