Daily digest market movers: Gold price skyrockets as the Greenback tumbles
- The US Dollar Index tumbled 0.48% and is at 102.85, its lowest level since January 24. This is a tailwind for the non-yielding metal.
- The CME FedWatch Tool shows odds for a 25-basis-point rate cut in June are at 73%.
- On Wednesday, Minnesota Fed President Neel Kashkari said that he expects only one rate cut if it’s appropriate as economic data remains robust. He put into the table the chance of keeping rates unchanged through 2024.
- The Initial Jobless Claims for the week ending March 2 were 217K, surpassing estimates and the previous reading of 215K.
- The US Balance of Trade was $-67.4 billion, exceeding estimates of $-63.5 billion and higher than December’s $-64.2 billion.
- US economic data previously released during the week:
- Private companies hired less than forecast but exceeded January’s reading at 111K as they added 140K jobs to the workforce, below estimates of 150K, according to ADP Employment Change report.
- The US Job Openings and Labor Turnover Survey (JOLTS) for January showed that there were 8.863 million job openings, a figure that fell short of expectations and was marginally lower than the previous month's report of 8.9 million and 8.889 million, respectively.
- The S&P Global Services PMI experienced a slight decrease to 52.3, falling from January's 52.5, while the Composite PMI, which includes both manufacturing and service sectors, registered at 53.8. This figure did not meet expectations and was lower than the previous reading of 54.2.
- Additionally, the ISM Services PMI reported a decline to 52.6 from 53.4, coming in below the anticipated consensus of 53. This resulted in a negative impact on the US Dollar.
- Factory Orders in January fell more than expected, from 0.2% to -3.6% MoM.
- On Monday, Atlanta Fed Bank President Raphael Bostic said a strong labor market and decent economic growth have bought time for the Federal Open Market Committee (FOMC) to decide on when rate cuts will be optimal. Bostic added that the Fed is having a “rebounding success” as inflation slowly returns to the desired target without hurting labor demand.
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