Fed Minutes Are Redundant As Trade War Grows - LCG
Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!
The minutes of the last Federal Reserve monetary policy meeting will have less impact on markets as sentiment and risks have shifted since then, according to Jasper Lawler, head of research at London Capital Group. He added that escalating trade tensions between the U.S. and China continue to weigh on global growth expectations. “A prolonged trade war would negatively impact the US economy and the Fed could try to cushion this by cutting interest rates. According to the CME Fed funds, a 25-basis point interest rate cut by the Fed before the end of the year has now been fully priced in,” he said. Lawler added that looser monetary policy is not having the traditional effect on the U.S. dollar. “Despite increased expectations of a rate cut by the end of the year, the dollar remains elevated. It is quite simply the best of a bad bunch.”
By Neils Christensen of Kitco News; firstname.lastname@example.org
U.K. Brexit Chaos Could Help Gold Prices
Wednesday May 22, 2019 10:10
Gold investors are feeling a high degree of frustration as the precious metal struggles to find momentum, as market uncertainty continues to grip financial markets. But analysts at Commerzbank warn that the show isn’t over just yet. Ongoing geopolitical turmoil in the U.K. over Brexit negotiations could support gold prices, they said. “If UK Prime Minister Theresa May loses the vote on the Brexit deal with the EU once again – it is scheduled for early June – her days as head of government will probably be numbered. Gold should then profit from the chaos and uncertainty there,” the analysts said.