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As we delve into a rollercoaster of financial events, we'll uncover the Federal Reserve's daring rate hike amidst a banking crisis, Bill Gates' AI revolution vision, and the resolute rise of Gold.
Fasten your seatbelts for an exciting journey through the twists and turns of the financial markets! 🎢
A Fed’s quarter-point hike amid banking crisis
In a bold and decisive move, the Federal Reserve has turned up the heat in its battle against inflation.
On March 22, 2023, the Fed raised its key interest rate by 25 basis points, sending borrowing costs soaring to levels unseen since 2007.
Following the Fed's rate hike, various market segments reacted differently to the news, reflecting the situation's complexity and the factors influencing each sector. For example, the US Dollar Index felt the pressure, and Gold reacted with growth.
Read the full article for more on the impact of the Fed's monetary policy on the markets.
Trading involves significant risk of loss.
Bill Gates envisions AI revolution: a catalyst for soaring stocks in tech giants Google and Microsoft
Bill Gates lauds artificial intelligence (AI) as the most groundbreaking innovation in recent history, likening its importance to that of computers, mobile phones, and the internet.
The discourse surrounding AI applications has surged following the November debut of OpenAI's ChatGPT. At its core, AI pertains to a computer's ability to learn from massive datasets and mimic human-like reactions.
Industry behemoths such as Google ($GOOG) and Microsoft ($MSFT) have achieved remarkable AI advancements, fueling intense rivalry within the sector. Shares of these companies were mostly on the rise this week.
Trading involves significant risk of loss.
Gold broke $2000 while markets focused on the Fed decision
The price of Gold against the US Dollar has increased in value. As mentioned last week, traders should also note that Gold and the Dollar’s inverse correlation has significantly weakened. This week, the price of the Dollar and Gold are both seeing an increase in demand. The main price driver relates to the instrument’s status as a safe haven asset.
Investors have been driven to safe haven assets for many reasons related to lower investor confidence and a risk-off appetite. The most recent influence was the emergency Federal Reserve meeting. It has also been confirmed that the Fed has boosted Dollar funding to 5 global central banks through swap lines.
Trading involves significant risk of loss.
$GBPUSD climbs to 6-week high, following BOE rate decision
The $GBPUSD climbed to a six-week peak in response to the Bank of England's decision to raise interest rates.
In the last session, the BoE opted for a 25 basis point hike, marking the highest rate since 2008.
This move comes as the BoE aims to maintain its current monetary policy after an unexpected inflation surge last month. The Monetary Policy Committee reportedly voted 7-2 in favor of the increase, resulting in a new rate of 4.25%.
As a result, the $GBPUSD reached 1.2343 on Friday, its highest level since February 2nd.
Trading involves significant risk of loss.
This concludes our weekly recap. Have a great weekend and see you next week! 👋
IMPORTANT NOTICE: Any news, opinions, research, analyses, prices or other information contained in this article are provided as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and therefore, it is not subject to any prohibition on dealing ahead of dissemination. Past performance is not an indication of possible future performance. Any action you take upon the information in this article is strictly at your own risk, and we will not be liable for any losses and damages in connection with the use of this article.
RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail client investors lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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