FedWatchTool indicates that there is a 85.4% probability that Fed will leave the federal funds rate unchanged in December. Traders expect that Fed will start cutting rates in June 2024.
U.S. Dollar Index settled near the 105.60 level after the release of the Initial Jobless Claims report. While traders have started to prepare for rates cuts in 2024, demand for the American currency remains strong.
Gold settled below the $1950 level and continues to move lower. The rebound in Treasury yields puts some pressure on gold markets. In addition, demand for safe-haven assets declined amid signs that other countries would not be dragged into Israel-Hamas conflict.
SP500 moved towards the 4400 level in premarket trading. The strong rally continues as traders bet that Fed will not raise rates this year. At this point, there are no signs of profit-taking as the general market sentiment remains extremely bullish.
For a look at all of today’s economic events, check out our economic calendar.