The Federal Reserve's speech turned out to be much more aggressive than expected. In connection with this, there is a decrease in the prices of gold and silver on Thursday. There is still uncertainty in the precious metals market because of the likely increase in interest rates in the U.S.
The rate of inflation in the UK has started to decline, however, market participants don’t seem to be interested in it. According to ING economists, the pound/dollar pair is likely to change on the background of the U.S. Federal Reserve's statements.
According to iBanFirst, in terms of the current economic situation, the dollar index will stay strong. The exchange rate will be in this position for a long time and will probably exceed the mark of 115.
Earlier, the inflation data showed lower-than-expected results. Because of this, after a sharp fall, the US dollar barely got a fix on Wednesday.
Brent crude oil prices have resumed the level recorded at the beginning of the year. Economists at Deutsche Bank predict that the cost of fossil fuel may reach $100 per barrel in the first quarter of 2023. However, there could be a subsequent decline to $80 dollars.
It will take at least a few weeks to clean up the largest oil spill in the United States. This was reported on Tuesday by local Kansas authorities, referring to a recent meeting with the owner of the Keystone pipeline, TC Energy Corp.
The US Consumer Price Index will be released at 13:30 GMT. Will it move the currency price? According to economists at Commerzbank, the inflation report will not drive the US dollar.
According to chief credit strategist at BNP Paribas Japan Mana Nakazora, the Bank of Japan should shift from its monetary policy measures. Thus, the central bank would be more flexible in adjusting interest rates to the differential pace of monetary policy tightening across countries.
According to economists at the British bank HSBC, Australian and Canadian dollars will be quite vulnerable in the near term. However, both currencies should gradually recover next year.
As it was told by China’s ambassador to the U.S. on Monday, the country’s authorities are going to further ease its COVID-19 restrictions. He also added that China is planning to have more visitors from abroad in the near future.
