Monday mornings start with a fresh look over markets. Follow up the latest events to make well though investment decisions during the next week.
U.S. Dollar vs Precious metals
The US dollar index begins the trading week slightly higher, continuing its price uptrend. Gold and silver spot prices settled down, being modestly higher in the early trading Monday, and breaking the previous 6-week streak of losses. These minor upside price corrections on the market are influenced by the future FOMC meeting this week.
Last Friday, the Bureau of Labor reported that the US economy added 253,000 jobs in February (much more than the estimated 190,000), the unemployment rate decreased to 4.7 % and the average hourly earnings increased by 2.8 on an annualized basis. The report sets the stage for this week’s main event – the Federal Open Market Committee meeting on Tuesday and Wednesday.
During the meeting, it’s widely expected that the FOMC will approve a quarter-point hike in its interest rate, the third in just a decade, which should boost borrowing costs across the economy. Fed officials don’t hide their desire to move the rate closer to a reasonable level after an extended period of holding it back because of the financial crisis.
Stock Market Today
By the end of the last week, the stock market moved higher after traders digested the Friday’s crucial jobs report, indicating a 100-points gain of the Dow Jones Index. This Monday morning, the market was moving rather flat to slightly higher, flagging the traders’ preparedness for the very likely increase in the interest rate later this week. Therefore, the US stock market stays focused on Trump’s administration promises of pro-growth policies.