© Reuters.
Investing.com – A few moments after the release of the US labor market data, the markets changed their direction towards a 25-point increase in the next meeting instead of 50 points, as expectations had changed immediately after the Federal Reserve Chairman’s statements on Tuesday and Wednesday in favor of a 50-point increase.
Employment data was issued just above experts’ expectations, but it was lower than the previous month’s numbers, which motivates the Fed to ease the pace of tightening, as Al-Faisal is now scheduled to be issued next week.
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On the other hand, the unemployment data came to reflect what the Fed wants, which wants to see greater unemployment to achieve a soft recession and control inflation, as it rose more than experts’ expectations and greater than the rate recorded in January, which is what the markets are interacting with now, as it strengthened his gains, and the depth of his losses.
The markets are now pricing interest at the meeting to be held during the current month, with an increase of 25 points instead of 50 points, as it appears Expectations changed to 44.7% in favor of an increase of 50 points, after it was 60.9% the previous day.. The tool also indicates It increased by 25 points, or 55.3%, compared to 39.1% the previous day.
For the month of February, while experts expected an addition of 205 thousand only, while a decrease in the reading recorded in January from 517 thousand to 504 thousand.
With 265 thousand jobs, and expectations were to add only 210 thousand, but it is less than the previous reading, which recorded 386 thousand.
On the other hand, it rose by 3.6%, while experts expected the rate to remain as it was in January at 3.4%.
It rose by 0.2%, less than the forecast of experts who expected a rise of 0.3%, the same rate recorded in January. As for Ali, it rose by 4.6%, while experts expected it to rise by only 4.7%. However, the January reading was 4.4%.
Before the most important Fed meeting, how will gold, the dollar and treasury bonds interact in light of the flow of data.. What is the golden opportunity before this?
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Recent Federal President’s remarks
The head of the US Federal Reserve, Jerome Powell, indicated that at the next meeting, and that what will determine this percentage is the upcoming data. Confirming that the final interest rate may be higher than expected.
“We have specific goals, which are restoring price stability and making optimal use of the labor market,” according to Powell. He stressed, “If the economic data requires a further rate hike, we will do so.”
He stressed, “We will be ready to increase the rate of hike if this data does not come against the desire of the Fed.”
Gold and the dollar now
It strengthened its gains, rising by 0.8%, to $1844.5 an ounce.
US gold futures rose 0.75% to $1,848 an ounce.
The dollar index declined immediately after the data was released, falling by 0.55% to 104.7 points.
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