HFM Kenya

50 bp cut was quite unexpected. However, it is a way for the US to try and stabilize its economy in the final quarter. Jerome had views regarding it: 1. Diminish Inflation 2. Seeing if the economy will slow down as they may also dial back pace of further cuts. 3. They are not in a rush to raise rates. 4. No one should think that it is the new pace. 5. Squarely focused on the country's goals. 6. Committed to maintaining economy's strength. 7. Reducing policy restrains from today. So it is the investor's reaction that will gradually translate to his confidence in the future.

Curious on what’s happening to gold https://x.com/hfmkenya/status/1836471623072772232

Breaking 🚨: the fed cut by 50bps, gold at all time highs. Find out why:

The US Dollar remained stable at the start of the US trading session on Tuesday, showing little response to the release of Retail Sales data as anticipated. The DXY edged slightly higher, pulling away from its low for the year but with only a minimal recovery. Federal Reserve easing has become more likely, with market pricing implying a 50 bps cut, while most analysts still predict a 25 bps cut. The US economy is experiencing growth above historical norms, indicating that the market is pricing in overly optimistic expectations of monetary policy easing. This surge in optimism may be excessive as the economic data suggests that the Fed is likely to maintain its current stance of gradual interest rate increases. Risks of a dovish surprise from the Fed remain, but not all members are expected to support such a move. Bps stands for basis points.

Is the Federal Reserve gearing up for a 50 basis points hike, or will they stick to 25? Find out on this episode of the Market Watch https://youtu.be/TydAEu-cdxw

The US Dollar struggles to stay resilient against its major rivals at the beginning of the week, which will feature monetary policy announcements from major central banks and key macroeconomic data releases. Growing expectations for a large Federal Reserve (Fed) rate cut at this week's policy meeting caused the USD to come under selling pressure in the second half of the previous week EUR/USD closed the previous week virtually unchanged. The pair trades modestly higher on the day, a few pips above 1.1100 in the European morning of yesterday.  GBP/USD failed to build on Thursday's gains and ended the last day of the previous week flat. The pair gains traction in the early session and trades above 1.3150.  Gold continues to stretch higher after registering impressive gains on Thursday and Friday. XAU/USD was last seen trading at a fresh record-high.

The Dollar opened the week with a strong bearish move. It might drop towards the 100.000 area or consolidated amid the FOMC. All eyes on the FOMC on the 18th(Wednesday). It is the most anticipated release as we move towards the last quarter. Gold and other commodities are the one that might be most affected in the long run as opposed to currencies. Technical Analysis will help for basis of entry and exits. Trade the plan.

Get your today's insights into the global financial landscape and make informed trading decisions. Don't miss out on today’s expert analysis! Only on the morning market call ➡️ https://bit.ly/morningmarketcall See you soon!

Stay ahead of the markets! Take a look at the upcoming week’s market moving events and make informed moves. Check the Economic Calendar on our website for more details:http://bit.ly/economiccalendar_ke #hfmkenya #HFM #TheWeekAhead