Super central bank week is here: Fed rate decision imminent, markets closely watch policy signals and core PCE data
October 28 — Super central bank week officially kicks off this week, with the Fed’s latest policy meeting underway. The decision will be announced in the early hours of October 29 Beijing time.
CME interest rate futures data also show that markets see a more than 90% probability that rates will remain unchanged at this meeting. More than the decision itself, market participants are focused on signals from the Fed about a rate hike in December.
Market observers believe that if the Fed strikes a hawkish tone at this meeting, U.S. Treasury yields are likely to rise, putting pressure on gold prices.
Meanwhile, the September core PCE price index, a key inflation gauge tracked by the Fed, will also be released that evening. It could prove pivotal in assessing the persistence of inflation and shaping expectations for a December rate hike.
If inflation comes in higher than expected, market expectations of a December rate hike will strengthen further, leaving gold under continued pressure from interest rates. But if inflation eases, it could help alleviate the current headwinds facing financial markets.
#超级央行周
October 28 — Super central bank week officially kicks off this week, with the Fed’s latest policy meeting underway. The decision will be announced in the early hours of October 29 Beijing time.
CME interest rate futures data also show that markets see a more than 90% probability that rates will remain unchanged at this meeting. More than the decision itself, market participants are focused on signals from the Fed about a rate hike in December.
Market observers believe that if the Fed strikes a hawkish tone at this meeting, U.S. Treasury yields are likely to rise, putting pressure on gold prices.
Meanwhile, the September core PCE price index, a key inflation gauge tracked by the Fed, will also be released that evening. It could prove pivotal in assessing the persistence of inflation and shaping expectations for a December rate hike.
If inflation comes in higher than expected, market expectations of a December rate hike will strengthen further, leaving gold under continued pressure from interest rates. But if inflation eases, it could help alleviate the current headwinds facing financial markets.
#超级央行周
