Daily market analysis

Forex Market Analysis: Central Banks, Inflation Data, and Market Impacts 11 December 2023

December 11, 2023

CURRENCIES:

  • Key Points:
  • Highlighted Events:
    • Key events include US inflation data, UK GDP figures, and monetary policy announcements from FOMC, Bank of England, and European Central Bank.
    • Potential impact on precious metals, stocks, and currency pairs (USD/JPY, EUR/USD, GBP/USD).
  • Market Analysis:
    • Traders advised to closely monitor the US inflation report for insights into interest rate expectations.
    • Expectations of limited progress toward the Fed’s target may affect the Federal Reserve’s December meeting stance.
  • Central Bank Announcements:
    • Fed, ECB, and BoE expected to maintain policy settings.
    • Emphasis on analyzing forward guidance and projections given the economic conditions in the Eurozone, UK, and the US.
  • Currency Outlook:
    • Growth concerns in the Eurozone and the UK may influence cautious outlooks from Lagarde and Bailey.
    • Powell may adopt a more hawkish stance considering the resilience of the American economy, potentially favoring the US dollar against major peers.
  • Potential Market Movements:
    • US dollar rally, driven by a resurgence in Treasury yields, may impact gold (XAU/USD) and silver (XAG/USD).
    • Risk assets, including the Nasdaq 100, could face pressure in such scenarios.

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STOCK MARKET:

  • Highlighted Events:
    • Key events include US inflation data, UK GDP figures, and monetary policy announcements from FOMC, Bank of England, and European Central Bank.
    • Potential impact on precious metals, stocks, and currency pairs (USD/JPY, EUR/USD, GBP/USD).
  • Market Analysis:
    • Traders advised to closely monitor the US inflation report for insights into interest rate expectations.
    • Expectations of limited progress toward the Fed’s target may affect the Federal Reserve’s December meeting stance.
  • Central Bank Announcements:
    • Fed, ECB, and BoE expected to maintain policy settings.
    • Emphasis on analyzing forward guidance and projections given the economic conditions in the Eurozone, UK, and the US.
  • Currency Outlook:
    • Growth concerns in the Eurozone and the UK may influence cautious outlooks from Lagarde and Bailey.
    • Powell may adopt a more hawkish stance considering the resilience of the American economy, potentially favoring the US dollar against major peers.
  • Potential Market Movements:
    • US dollar rally, driven by a resurgence in Treasury yields, may impact gold (XAU/USD) and silver (XAG/USD).
    • Risk assets, including the Nasdaq 100, could face pressure in such scenarios.

Styliana Charalambous
Market Analyst

My name is Styliana Charalambous, possessing a professional qualification as a Chartered Certified Accountant and a Bachelor’s Degree in Accounting and Finance. Highly motivated financial analyst with expertise in audit and investment strategies. I have several years of experience in the finance industry, as an audit supervisor at KPMG and the Head of Investment & Market Research in a multinational Fintech company.

Passionate about personal finance, investing, and creating finance content on social media. Lecturer in Accounting & Finance at Canterbury Christ Church University. I am the Founder and CEO of Selfmade Academy, an organization that helps thousands of students worldwide to plan for their financial future and make smart decisions about their money

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