Created
: 2024.05.01
2024.05.01 14:51
Silver price recovers its recent losses registered in the previous session, trading around $26.50 per troy ounce during the Asian trading hours on Wednesday. However, US Dollar (USD) strengthened on the back of rising US Treasury yields. Market participants adopt a cautious stance ahead of the Federal Reserve's (Fed) policy decision.
The stronger labor cost data from the United States (US) has reignited discussions about the Federal Reserve potentially delaying rate cuts due to inflationary pressures. The US Employment Cost Index surged by 1.2% in the first quarter, marking its largest increase in a year and surpassing both expectations of 1.0% and the previous figure of 0.9%. This data underscores existing wage pressures, which could exacerbate the impact of persistent inflation within the US economy.
Traders have been scaling back expectations for Fed rate cuts this year, buoyed by robust US economic data and persistent inflation. According to the CME FedWatch Tool, the probability of the Federal Reserve maintaining interest rates at their current level of 5.5% in June has surged to 91.6%, up from 81.2% a week ago. The prospect of higher interest rates increases the opportunity cost of holding non-yielding assets like Silver, dampening its appeal.
Investors are expected to monitor the release of the ADP Employment Change and ISM Manufacturing PMI from the United States on Wednesday, ahead of the Fed's Monetary Policy Statement. These data releases are likely to provide further insights into the current state of the US economy, influencing market expectations regarding future monetary policy decisions.
Created
: 2024.05.01
Last updated
: 2024.05.01
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy