Fed's James Bullard wants to raise interest rates to 3.5%, G7 plan to announce a ban on Russian gold imports
Fundamentals:
Britain, the United States, Japan and Canada will ban new gold imports from Russia, the British government said on Sunday. The move marks a further escalation of sanctions against Russia by the Western camp. Leaders of the Group of Seven (G7) nations are scheduled to meet in Germany on Sunday. The British government said in a statement that the ban, which will take effect in the near future, will apply to newly mined or refined gold, but will not affect previously exported Russian-produced gold. Russia exported gold worth up to 12.6 billion pounds last year, and the country's wealthypopulationhave been buying it to reduce the financial impact of Western sanctions, according to a British government statement.
The Fed's “Eagle King” Bullard said on the 24th that he believes that raising interest rates will slow down economic growth. For now, rates are still far from neutral. In this case, raising interest rates early is a good idea. But it is too early to start a debate on the possibility of a recession. Raising rates early means the Fed can nip inflation in the bud before it takes root. He also said he wanted to raise interest rates to 3.5% this year. However, once deflationmomentum begins to build, the Fed may lower its policy rate.
Technical：Dow Jones Industrial Average: Last Friday, the three major U.S. stock indexes rebounded sharply, with the major indexes ending their three-week losing streak, with strong trends in banking and technology sectors. The Fed's “hawkish” Bullard said on the same day that concerns about a U.S. recession were exaggerated, and the Fed must boldly raise interest rates. The Dow fluctuated around the 31,500 target on Monday, focusing on the top 32,600.
USD: Yields on 10-year U.S. Treasuries extended their rebound trend, rising to a high of 3.136%. The U.S. dollar index fluctuated downward. It fell below the 104 mark during the U.S. session, and finally closed down 0.239% at 104.15; the dollar bulls were cautious and focused on the target position of 103 below.
Gold: On Friday, gold failed to jump to $1830 several times, and finally closed up 0.21% at $1826.18 per ounce; focus on the pressure level of 1845 during the day, and focus on the second target position of 1857 if it breaks through 1845.
Crude oil: The two oil prices rose in the U.S. session on Friday. WTI crude oil finally closed up 2.56% at $109.16 per barrel; Brent crude oil finally closed up 2.15% at $122.19 per barrel. On Monday, WTI crude oil fell 0.8 US dollars, the decline rapidly expanded to 1.5%, and then recovered; Brent crude oil fell by 1.5 US dollars in the short-term, and has now recovered some lost ground. The price of crude oil fell below the target position of 106 and then fluctuated and sorted out, and the target position near 98 is concerned below.
(The above analysis only represents the analyst's point of view, the foreign exchange market is risky, and investment should be cautious)
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