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The US Chicago PMI for February will be released in ten minutes.The Dow Jones Industrial Average opened up 80.29 points, or 0.19%, to 43,319.79 on February 28 (Friday); the S&P 500 opened down 0.85 points, or 0.01%, to 5,860.72 on February 28 (Friday); and the Nasdaq Composite opened down 91.14 points, or 0.49%, to 18,453.278 on February 28 (Friday).Dell (DELL.N) fell more than 6% after its fourth-quarter revenue fell short of expectations.U.S. Democratic Senator Warren: Todays data shows that the Fed has a very small window to cut interest rates.February 28, Canadas economic growth accelerated last quarter and continued this momentum into the beginning of this year as the central banks aggressive interest rate cuts boosted household spending. Advance data showed that GDP grew 0.3% in January and 0.2% in December last year. This was the strongest growth since the second quarter of last year, and a rebound from the revised 2.2% growth rate in the third quarter. The Bank of Canada has been actively cutting interest rates last year to strengthen the economy, and the bank expects GDP to grow by 1.8% in the fourth quarter. These data may support the central bank to pause interest rate cuts at its next meeting on March 12. The Bank of Canada has said that they hope the economy will grow better in order to stick to the soft landing of the Canadian economy, and the broad growth of household consumption shows that interest rate cuts have successfully accelerated economic growth. Increased household spending, exports and business investment (especially residential construction) in the fourth quarter drove solid economic growth. Household consumption grew 5.6%, the highest increase since the second quarter of 2022.

Forecast for the Gold Price: XAU/USD bulls return, market remains tense

Alina Haynes

Dec 27, 2022 10:57

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According to yesterday's analysis, Gold Price Forecast: XAU/USD bulls must commit at critical trendline support, the Gold price has found demand at the aforementioned support region and has moved back in line with the larger bullish trend. On Friday, ahead of the Christmas holidays and long weekend, the price of gold inched up, aided by Friday's falling inflation statistics.

 

US consumer spending rose 0.1% in November after rising 0.4% in October, indicating that inflation is moderating, but not enough for markets to anticipate a policy shift from the Federal Reserve or a halt in their rate-hike trajectory. The index of personal consumption expenditures (PCE) decreased by 0.5 percentage points from October to 5.5% annually. Excluding volatile food and energy costs, the index increased on a monthly and annual basis by 0.2% and 4.7%, respectively, in accordance with expectations. The increased revision of October PCE inflation data is terrible news for the gold market.

 

Thursday's US Gross Domestic Product and Jobless Claims figures revealed that the nation's economy returned quicker than previously predicted and that the labor market remains extremely tight. Overall, the plethora of data offers little to alter the belief that the Fed will stick to its plan to combat inflation in 2023. The non-yielding, non-interest-bearing asset is on course for a second consecutive year fall as a result of these rate hikes enacted to curb price pressure.

 

According to Brown Brothers Harriman analysts, the markets continue to remain skeptical of the Fed. "After reaching a high of 5.5% following the most recent FOMC meeting, the terminal rate as observed on the swaps market has fallen down to approximately 5%," analysts explained. "Similarly, WIRP predicts a 50 bp increase on February 1 is priced in at only 33%, followed by a final 25 bp increase on March 22. We cannot see why the markets continue to oppose the Federal Reserve. With the exception of a few communications blunders here and there, chairman Jerome Powell and his colleagues have been firm about the need to raise interest rates for an extended period of time. Recent US data indicate that the labor market remains robust and that the Fed must take additional action.


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