Precious metals have lost a lot of value so far today and are only looking like they will continue to do the same throughout the duration of the week. As you could have probably guessed, all of this downward movement on the part of precious metals is making it even easier for the US Dollar and US equity markets to make significant gains. On the whole, this week has been pretty quiet, but yesterday brought with it the release of the FOMC’s minutes from their latest meeting and Friday will play host to a global central bankers meeting in Jackson Hole, Wyoming.
FOMC Minutes Deemed Hawkish By Market
Despite this week being generally devoid of any noteworthy economic data, yesterday saw investors focusing their attention on the latest FOMC minutes, which were released in the afternoon. Contrary to what many people were expecting, the minutes’ wording indicated that the FOMC is confident that the US labor situation will continue to improve. If you can remember, the continued improvement of the labor situation in the United States was one of the Federal Reserve’s prerequisites for the raising of interest rates.
Because of the somewhats surprising nature of the FOMC’s minutes, the USD and US equity markets made considerable gains towards the end of the day on Wednesday. Today, the USD index has suffered a bit of a pullback, but most equity markets in the United States are still on the up and up. Now, the attention of the investing world shifts towards a central bankers meeting scheduled to kick off on Friday in Jackson Hole, Wyoming.
Janet Yellen is expected to make a speech in Wyoming on Friday, and the eyes of the investing world will be fixated upon her every word. Of course, the prevailing hope is that her words will shed some more light on the future of interest rates in the United States, but the reality of the matter is that her remarks will more than likely be more on the neutral side of things. ECB president Mario Draghi is also expected to speak, and with the EU suffering from a recent string of poor economic data, it will be interesting what he has to say.