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Investing.com – With Jerome Powell confirming the last few hours that data will determine the next meeting, weekly unemployment data has now been released that should give an overview of , as the just-released weekly unemployment data missed expectations.
Today’s data reflects a favorable vision of the Fed’s vision, which desires a weak labor market and greater unemployment to achieve a soft recession and then lower inflation, as jobless claims rose, and came higher than market expectations, and higher than the week before last. As this data comes hours before it is issued tomorrow, which the markets are looking forward to because of its importance to the Federal Reserve in pricing interest rates.
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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Unemployment data
It recorded 211,000 applications, higher than the forecast of experts who expected 195,000. Especially since it had recorded 190 thousand the week before last.
Thus, it recorded 197 thousand in 4 weeks, after it recorded 193 thousand the week before last.
The Unemployment Weekly Index provides very timely data, quantifying the amount of individuals who claimed unemployment insurance for the first time during the past week and traders view the unemployment rate as an indicator that gives little indication of the future performance of the economy. The two downtrends have a positive effect on the country’s currency, as working people tend to spend more money.
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Interest and employment data tomorrow
Markets are now pricing in a 50 basis point rally at the upcoming Fed policy meeting on March 21-22.
It is expected to show an increase in non-farm payrolls of 205K in February, according to forecasts by experts on Investing Saudi Arabia.
While Powell confirmed yesterday that 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 added: Inflationary pressures were higher than expected, especially since January data was strong in terms of the labor market, employment and consumer expenditures. Pointing out that there is still a long way to go to reduce inflation, and the road is likely to be difficult.
The Fed chief reiterated his message from Tuesday that the US central bank is likely to raise interest rates higher than previously expected and that it could move at a faster pace if strong economic data continues to emerge.
“We’ve got some potentially important data coming,” he said, referring to the latest reading on US employment opportunities, which was released as the certification began on Wednesday, in addition to February’s due Friday and March 14 release.
He stressed, “We will be ready to increase the pace of raising interest rates if this data does not come against the desire of the Fed.”
Gold and the dollar now
It extended its gains immediately after the release of the data, rising by 0.55%, to $1824 an ounce.
US gold futures rose 0.5% to $1,828.
On the other hand, it fell to 105.3 points, or 0.3%.
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