DXY Daily
I spoke with Forex Analytix’s Dale Pinkert earlier today about Federal Reserve monetary policy, inflation and market expectations.
We first talked about the economic and social situation in South Africa because I was there last week and had an in-depth look at the challenges facing the country, such as power shortages, high crime rates, corruption and unemployment. . I also emphasized the potential that a young workforce and abundant natural resources offer for this country.
We then turned to the position of the US dollar and its potential impact on global markets. I believe a dollar crack could stimulate the gold and stock markets, but I don’t think it will happen until the end of the year or early 2024.
We touched on the Fed’s potential priorities: fighting inflation and preventing a recession, along with Mr. Powell’s legacy. It suggests that decisions that trigger a deep recession could have a negative impact on the legacy of central bankers. The role of AI in the economy has also been debated, and it is believed that AI could cause deflation and mitigate inflationary pressures in the long term. Finally, the dialogue will discuss investment strategies under these uncertainties. Speakers suggest buying oil and copper producers, betting on a stronger US dollar, and capitalizing on market panic related to the US debt ceiling.
european marketThere are signs of economic tension in Europe, job losses in the UK and weak business confidence in Germany. They also mention ongoing energy problems, possibly related to shortages and rising prices.
Copper and petroleum: I’m bullish on copper in the long term and believe it will become more expensive by 2025 or 2026. They suggest that it may be possible to wait for a potential recession and buy at a lower price, but if there is a recession, they will tend to buy more. Prices fell sharply in the short term. They also discuss the oil market, suggesting that risk-reward ratios are good at current levels, especially given the market’s bearish conditions.
Cryptocurrency: In places such as South Africa, there is less enthusiasm for bitcoin and cryptocurrencies than there were a few years ago.
USD: We believe the dollar has room to rise next quarter, in part due to strong US consumer markets. I believe this is more resilient than other global markets, probably thanks to higher savings rates and the strength of the 30 countries. -Year Fixed Mortgage.
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