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After the Fed’s Decision… What’s Next for the Dollar?



After the Fed’s Decision… What’s Next for the Dollar?
  • Market focus has recently shifted from geopolitical issues to economic data
  • The US dollar fell slightly following the Federal Reserve’s decision to keep rates unchanged
  • At the same time, the EUR/USD pair continued to recover against the dollar

In recent days, financial markets have seen a shift in focus, moving from geopolitical concerns to economic data, as news flow in the Middle East slows..

Geopolitical tensions continue to pose major risks to the global economy. Rising energy costs, especially in countries experiencing high inflation rates, complicate the effectiveness of monetary policies used by central banks. In this context, the decision taken during the recent US Federal Reserve Federal Open Market Committee meeting is critical for the US economic trajectory..

While the Fed chose this month to move interest rates to a range of 5.25% to 5.50%, in line with expectations, there is a growing sense in the market that the final rate hike has been reached, marking the start of next month. Duration of interest rate changes. Also, the FOMC report acknowledged rapid economic growth and continued high inflation last quarter. Notably, it highlighted cost pressures from rising interest rates, which could affect employment and inflation.

In this context, the central bank reaffirmed its commitment to effective use of monetary policy instruments to address increasing risks of deviation from the inflation target. Chairman Powell emphasized that future decisions will depend on economic data and made it clear that interest rate cuts are not currently on his agenda..

In this context, tomorrow’s nonfarm payrolls report and October’s inflation data release will serve as key indicators to gauge whether the central bank will go ahead with a rate hike in December..

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The US dollar fell slightly after the Fed’s decision

Meanwhile, the US dollar maintained a sideways path, seeing a slight decline amid the perception that interest rates have peaked. Stability has provided some relief to risky currencies and equities. It should be noted that the currency remains an important measure of risky assets, maintaining a positive outlook and recently approaching the $36,000 level..

As a result, discussions of the central bank’s speech have shifted from discussions about how long interest rates will stay high to a more balanced and bleak stance for now..

Technically, a closer look at the dollar index reveals its ongoing struggle around the 106.6 level. The dollar index is showing relative weakness, approaching the 107 range, after switching from a bullish trend to a flat pattern in October. The nearest support is currently in the lower zone at 106.2..

DXY Daily Chart

On the daily chart of the dollar index, we can see that the 105.5 level corresponds to the lower boundary of the channel formed last month. Although the Fed’s less hawkish tone from yesterday contributed to the dollar’s weakness, it is clear that the 106.2 support level is currently being tested. If this level is breached, the focus may be on the second support level at 105.5, and a possible breach will lead to a further decline in the value of the dollar, which may extend the index correction to the range of 102-103..

On the other hand, the May-July correction indicates that the cycle may have completed within the Fibonacci extension zone, given the peak reached in October and the failure to cross the 107 level. Technically, the next phase may involve a quick correction below the 105 level.

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However, as long as the dollar index remains above 105, it is likely to retain its status as a safe-haven asset. If mounting pressures from geopolitical risks push investors towards the dollar, a short-term rally towards 108.5 with support at 105 could be seen..

In short, the future path of the dollar index appears to depend on a clear daily close above the 105 and 107 ranges, which forms its next direction..

Technical analysis of a pair : The euro is trying to recover against the dollar

The EUR/USD pair is trying to recover from the 1.04 levels in early October while moving horizontally. The euro began to show signs of pausing its downward momentum last month after falling as much as 7% against the dollar from its peak in the July-October period..

The EUR/USD pair continues to test the resistance level at 1.0636. A daily close of the pair above this price level could see the next move towards the 1.075 level. This point may be important for the trend reversal of the EUR/USD pair.

According to recent conditions, the pair may continue on its way until it stays within the channel created during the recovery effort that began in October..

If the lower limit of the channel is breached, the pair may retest the 1.045 area on daily closes below the 1.056 level, depending on the strength of the dollar..


Find all the information you need at InvestingPro!

Find all the information you need at InvestingPro!

Discharge Liability: This article is written for informational purposes only; It does not constitute a solicitation, offer, investment advice or recommendation and is in no way intended to induce the purchase of assets. I would like to remind you that any type of property is evaluated from multiple perspectives and involves high risks, so any investment decision and associated risks are the responsibility of the investor..

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Passwords | Al Khaleej newspaper



Passwords |  Al Khaleej newspaper

“GT Georgia Tech”

With the growing number of online accounts and the rise of cyber threats, password security has become an important concern for individuals and organizations. However, a recent study revealed that outdated password practices are still in place, putting millions of people at risk.

A study conducted by a group of cybersecurity experts from around the world analyzed data on 10 million leaked passwords, and the alarming results showed that many people continue to use weak passwords that are easy to guess.

One of the most disturbing findings was the prevalence of common passwords like “123456” and “password”. It is easy for hackers to gain unauthorized access to personal accounts.

Another worrying trend found in the study is the reuse of passwords across multiple accounts. Many people have been found to use the same password for their email, social media and online banking accounts. This practice poses a significant risk because a single account leads to Hacked into Domino Effect, allowing hackers to access multiple accounts.

The study also highlights the importance of regularly updating passwords. A large number of individuals do not change their passwords for years, leaving their accounts vulnerable to attack.

Experts recommend changing passwords at least every three months and using a combination of letters, numbers and special characters to improve security.

The results of this study underscore the urgent need for individuals and organizations to adopt strong password practices.

Educating users about the importance of using unique and complex passwords and updating them regularly is essential to reduce the risks of cyber attacks.

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Gold prices broke the barrier of $2070 per ounce at the end of last week’s trade



Gold prices broke the barrier of $2070 per ounce at the end of last week’s trade

After weaker-than-expected U.S. economic data and rising military tensions in the Middle East, gold prices rose to record highs at the end of last week’s trade, hitting a barrier of $2,070 an ounce. Adel Al-Fathli, head of strategic planning at Kuwait Dar Al-Sabah Company, said in a statement to Kuwait News Agency (KUNA) on Sunday that the yellow metal managed to post a profit for the third week in a row. Along with weak US economic data. Al-Fathly said factory activity in the US has seen a continuous contraction for more than two months, along with a slowdown in personal consumption spending and a sub-level decline in the inflation rate in the US market. Gold futures (for delivery next February) rose 1.6 percent to $2,089 an ounce, while the dollar index, which measures the U.S. currency against major currencies, fell 0.35 percent to 103.1 points. Analysts’ pessimistic expectations for growth in US spending and output next year sent investors back to the safe haven (gold), especially as the Federal Reserve (Federal Bank) has aggressive plans to cut interest rates. 25 basis points during the Bank’s regular meeting scheduled for March 2024. He expected gold prices to see a “significant rise” if expectations that the US Federal Reserve cut interest rates by 135 basis points by the end of next year hold true. This will certainly lead to an increase in precious metals in the long run. Al-Fathly said that important reports will be released this week, the first of which is the US labor jobs report, followed by the purchasing managers’ index for services, monetary policy announcements in Australia and Canada, and data on inflation rates in China and South Korea, “all of which are indicators that will determine gold’s trends this week.” .” He said he believed developments in the Middle East region this week would be “stronger” as analysts monitor field developments due to the heavy impact on precious metals prices by military operations and shutdown threats. Some commercial waterways.” As for the local market, the price of a 24-carat gram rose to 20.375 dinars (about $62.2), 22 carat to 18.68 dinars (about $57), silver finished at 297 dinars (about $905), he said. ) per kilogram. ounce. It is worth noting that is one of the units of mass measurement, it is used in various measurement units, it is also called ounce and is equal to 28.349 grams, while the unit of measurement for precious metals is equal to 31.103 grams.

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The world’s central banks are increasing their reserves… Details in 10 facts



The world’s central banks are increasing their reserves… Details in 10 facts

Books – Islam Saeed

Sunday, December 3, 2023 at 03:00 AM

Central banks around the world continue to demand… Gold In 2023, gold trends for the third quarter of the current year 2023 as per the reports of the World Gold Council show that the demand for gold by banks has increased.

Central banks added 337 tonnes in the third quarter of 2023

The third largest buying level in the quarter reached by central banks

In the third quarter of 2022, banks bought a large amount of 459 tonnes of gold..

Since the beginning of 2023, demand by central banks has increased by more than 14%.

Total bank purchases of gold since the beginning of 2023 have reached a record high of 800 tonnes of gold.

Gold reserves reported by global central banks rose by a net 77 tonnes in September.

Central bank’s gold sale is only 1 ton.

– Fund outflows from gold investment funds continued in October, $2 billion

Since the beginning of the year, the funds’ investments have fallen 6%.

– Total cash outflows from gold-backed global investment funds have hit $13 billion since the start of the year

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