Yesterday, the FED published the minutes of the Federal Open Market Committee (FOMC) meeting held on November 1-2.
Publika.az informs that in the minutes of the last meeting, where the discount rate was increased by 75 basis points to the range of 3.75-4.00%, signals that the pace of interest rate growth may decrease in the upcoming meetings were noticed.
In the minutes, it was said that some Fed officials drew attention to the risks arising from the rapid increase in interest rates, while some members noted that the slowdown in interest rate growth could reduce the possibility of possible volatility in the markets.
At the moment, the stock markets are evaluating forecasts that the FED will raise interest rates at its December meeting by 0.50% with a 75% probability, and by 0.75% with a 25% probability. There are more than 50% chances that the FED will raise interest rates by 0.50% at the February meeting. This caused the dollar index to fall again to the limits of 105 points. According to the analysis, if the decline in the dollar index continues, the EUR/USD and GBP/USD pairs may rise to $1.05 and $1.22, respectively.
The interest rate decision of the Central Bank of the Republic of Turkey during today’s meeting may clarify the future fate of the trend in the USD/TRY pair, which has shown a horizontal trend in the last 2 months. If interest rates are cut to 9.00% as expected, this could lead to a depreciation of the lira.
The demand for gold is increasing again against the background of the decline in the dollar index. If the price of the precious metal per ounce, which is currently offered at $1,754 on world exchanges, can strengthen above the $1,750 level, it may rise to $1,776.
(İnvest.az)
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