This week has been packed with significant releases, among which the Fed and BoE Rate Decisions stood out. Despite both central banks leaving their rates unchanged, the markets were stirred by statements hinting at possible rate cuts in the near future.
Dive into our weekly recap for an in-depth analysis of the week's outcomes and the market's response!
Fed and BoE kept the interest rate unchanged
This week saw two major monetary events: the Bank of England and the Federal Reserve meetings, both of which decided to keep their key interest rates unchanged. In the US, the rate remains at 5.50%, while in the UK, it is at 5.25%. Both regulators have expressed intentions to start cutting rates this year, although they note that inflation still remains high.
Overall, these developments were positively received by the stock market, while the US dollar experienced a slight adjustment.
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Meta earnings top estimates as higher forecast
Meta Platforms ($FB) significantly surpassed analyst expectations with its fourth quarter earnings, posting adjusted earnings per share (EPS) of $5.33 and revenue of $40.11 billion, against anticipated figures of $4.94 EPS on $39.01 billion revenue. This performance marks a substantial increase from last year's $32.2 billion in the same quarter.
Alongside these strong results, Meta announced a $50 billion increase in its stock buyback program and introduced a quarterly dividend of $0.50 per share, propelling its shares to climb over 12% in after-hours trading.
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Gold prices hit new one-month highs at $2065
Gold ($XAUUSD) experienced a 1% increase, reaching new monthly highs of $2,065 on Thursday. While there is potential for a correction from these highs, gold prices might also continue their upward trajectory towards the $2,100 level, especially if market conditions fuel expectations of a March Fed rate cut. Such anticipation could weaken US Treasury bond yields and the US Dollar, further influencing gold prices.
Additionally, as investors realign their positions in response to recent Federal Reserve actions, the market's end-of-week adjustments are also expected to impact gold's price movement.
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EUR/USD advances toward 1.0900
The $EURUSD pair is making strides towards the 1.0900 mark as the US Dollar struggles for traction, enabling the Euro to capitalize on a generally positive sentiment. After rebounding from new two-month lows near 1.0780, coinciding with the 100-day SMA, the pair recovered well above 1.0800.
This move comes amidst a period of market consolidation following the latest Federal Reserve meeting, where Chair Powell indicated a readiness to maintain current interest rates for an extended duration, while also hinting at potential rate cuts later this year, despite acknowledging labor market tightness and the risks of delayed policy adjustments.
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This concludes our weekly recap. Have a great weekend and see you next week! 👋
