Forex News for 23 Feb 2023
Amsterdam
February 23, 2023
- The recently released FOMC meeting minutes reveal the members’ efforts to strike a balance between preventing an economic recession and maintaining interest rates high enough to bring inflation down to the Fed’s 2% target.
- According to the dot plot, the FOMC aims to reach a terminal rate of 5.6% in 2023. Members acknowledged that inflation had slightly eased in the past three months, but more progress is necessary to meet their objectives.
- The global stock markets experienced a decline, with the S&P 500 Index closing below the crucial 4000 level, while the NASDAQ 100 Index closed higher. However, there are indications of a slight recovery in equities.
- Two weeks ago, the S&P 500 Index made a golden cross, which is generally considered a strong long-term buy signal. Despite this, the price has since fallen.
- The 2-year US treasury yield remains near its historical high.
- Among the major currencies, the New Zealand Dollar is currently the strongest, while the US Dollar is the weakest. Nevertheless, this is a short-term trend, and the US Dollar has been generally strong in recent weeks.
- Some commodities, such as Sugar and Cocoa, continue to perform well, with prices rising after significant bullish breakouts. In contrast, the price of WTI Crude Oil is exhibiting a strong bearish momentum as it trades lower.
- Preliminary US GDP data will be released later today.
- Analysts were not surprised by the FOMC minutes’ content, as they largely confirm previous expectations.
- The current global economic situation remains uncertain, with different sectors and markets exhibiting mixed performance.
