Financial markets await Powell’s words
Confirmation or further slowdown in interest rate cuts? Trying to put aside the subject of tariffs for a few hours, the financial markets will look for answers in the words that J Powell, Governor of the FED, will speak on Capitol Hill today.
Our intermarket dashboards record further advances in gold and the dollar, once again joined in the bullish trend. Of note is a moderate rise in the S&P500 to VIX ratio, a sign of rising volatility in the markets. On the bond front, the ‘struggle’ of the global index continues with the dynamic resistance that seems to be preventing it from breaking the medium-term bearish trend at the moment. The precious metals effect, to which oil is also being added in recent sessions, is driving up the commodities market, the short-term trend is bullish.
On the macro front, as mentioned, everything revolves around Powell’s words. While waiting for official inflation data, the Fed governor is expected to give some indication of the next monetary policy moves and how the central bank will behave in the face of the Trump administration’s tariff policy. In December, with the announcement of a slowdown in rate cuts, markets reacted badly.
Our forecast analysis continues to be affected by the high uncertainty enveloping the markets. Mixed signals for equities, while indicators show overheating elements for gold prices. On the currency front, the dollar’s uptrend continues, a mixed situation on yields and still a wait-and-see attitude for cryptocurrencies
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NOTES AND WARNINGS
Analysis automatically generated by kbmeter.com. Analysis date: 11 February 2025 - 7:26 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.
