This week, the financial markets are buzzing with crucial economic releases, Fed rate hikes, and earnings reports, sending markets into motion and providing traders around the world with new opportunities.
Get a comprehensive overview of the week's key events with our up-to-the-minute recap, so you stay ahead of the game and make the most of your trading strategy 🚀
US Nonfarm Payrolls jumps to 517K vs. 185K expected!
Traders and investors, get ready for a market-changing update from the Bureau of Labor Statistics!
The January 2023 Nonfarm Payrolls (NFP) report has been released, showing staggering 📈 517,000 jobs added, far exceeding the expected 185,000.
These key indicators, combined with the significant increase in Nonfarm Payrolls, paint a promising picture for the US job market.
Fed raises rates a quarter point, expects 'ongoing' increases
The Federal Reserve, on Wednesday, February 1st, made a crucial monetary policy decision by raising its key interest rate by a quarter of a percent. This hike has resulted in the interest rate being 4.75%, the highest level since October 2007.
Nevertheless, the rate of growth has slowed down considerably. This move by the Fed reflects the declining inflation rate in the United States due to a slowing economy, and signals that a turning point may be approaching that could drive the stock market to new highs.
This raises an important question — what does this recent development mean for the financial markets?
Tech giants' earnings in focus
Most of the major tech giants reported earnings this week. The market reaction was mixed, but in most cases investors received positive signals, sending some companies' shares higher. For example, Amazon, Alphabet, and Meta all reported earnings growth. At the same time, market participants negatively viewed Apple's revenue decline.
Nevertheless, this volatility opens up many opportunities for stock traders 📊
Gold price falls from nine-month peak following Powell’s dovish remarks
Gold prices retreated as the US Dollar rebounded and some investors locked in profits after the safe-haven metal scaled a nine-month peak on dovish remarks from Federal Reserve Chair Jerome Powell.
Spot gold fell 1.8% to ~$1,915 per ounce, after hitting an intraday high of $1,959.52 an ounce earlier. US gold futures had a more moderate decline, down 0.6% at $1,931.50 per ounce in New York.
“While the underlying support to the gold market remains strong, the slight pullback in the market could be due to some profit-taking ahead of tomorrow’s monthly US jobs data,” said David Meger, director of metals trading at High Ridge Futures.
GBP/USD dropped to its lowest level since mid-January at 1.2220
The Bank of England raised its policy rate by 0.50% to 4% with 7 MPC members voting for the move. The bank's policy statement showed lowered inflation forecasts and a shallow recession, and Governor Andrew Bailey stated that they would reassess the policy if the economy aligns with their projections.
Following the announcement, the Pound Sterling faced heavy selling pressure and $GBP/USD declined to its lowest point since January, currently trading below 1.2200 due to increased risk aversion.
This concludes our weekly recap. Have a great weekend and see you next week! 👋
