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Recent trading sessions have started to become challenging for the stability of the Japanese yen’s strength, as USD/JPY has now posted a three-session bullish streak, with a gain of around 0.8% in the short term.
Over the past five trading sessions, EUR/USD price action has shown a consistent bearish bias, accumulating a short-term decline of close to 1%. One of the main drivers behind this growing weakness has been central bank dynamics, particularly in the United States, where new guidance could emerge following the release of key employment data scheduled for this week.
Gold closed the week with four consecutive bullish sessions and a gain of more than 2%, as buying pressure attempts to consolidate once again in the market. For now, buying strength has begun to improve following this week’s Federal Reserve decision and the recent pullback in market confidence, allowing gold—as a safe-haven asset—to recover ground in the short term.
The US dollar was broadly higher overnight as the Fed’s Bullard laid out a path for 50-bos hikes at each remaining Fed meeting this year.
What began as ‘just another ripper inflation print’ quickly turned into panic of an emergency hike from the Fed. But just how realistic is that?
Discover what the Federal Reserve is, how it operates, and the way its policies can influence markets.
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