Forex Marketz Daily Forex News – Fully Markets Update
Gold futures continued to hold steady during this morning’s Asian trade hours. The U.S. dollar is holding steady it 2018 high price level in its basket of currencies. There was also weaker than expected inflation data out of the United States.
As of 1 am GMT, spot gold (XAU/USD) was steady this morning. The bullion last fetched $1,321.93 per ounce. This is after hitting its best price level since April at $1,322.76 during yesterday’s trade session.
U.S. gold futures, for June delivery, was also pretty flat it last traded at $1,322.10 per ounce.
The U.S. dollar index is trading near its four and a half month high near 93.416. This was set earlier this week.
Gold Traders watch U.S. Economic Headlines on Inflation
Traders watched data on U.S. consumer prices (CPI), released overnight during North American trade hours. The came in weaker than expected for the month of April. This signed to traders to pare expectations that higher inflation would lead to faster Federal Reserve Bank hikes.
Futures for the Fed Funds Rates were up this morning. Even on weaker than anticipated cre inflation in the United States.
This data did not alter traders’ expectations that the FOMC, monetary policy arm of the Fed, will raise key borrowing costs at their meeting in June.
The Bank of England held rates steady on Thursday. The British central bank said that they wanted to be sure the economy was recovering from its rather slow start before it raised its key rates again.
Central bank rates are not very likely to move a lot in the coming years. These were comments from a member of the ECB. On Thursday, European Central Bank Governing Council member Philip Lane made these remarks.
Bank of Japan Governor Haruhiko Kuroda said the central bank could start a debate about how and when they would end its ultra-easy monetary policy. They want its inflation target to improve. Especially inflation itself before starting this debate. This radical stimulus program will not last forever and at some point the BOJ will withdraw from it.
