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Markets brace for Fed week
Gold prices fall as hopes diminish for early U.S. rate cut, attention shifts to upcoming Fed meeting and U.S. nonfarm payrolls data.
Dollar sees slight decline despite but maintains April gains.
Tech sector drives U.S. stocks higher on positive earnings, while inflation data meets expectations.
Oil prices drop amid Cairo peace talks, while concerns over prolonged higher interest rates weigh.
What's moving markets?
The dollar has seen a slight decline, although it maintains significant gains of over 1% for April. This rise comes as traders have largely discounted the likelihood of early rate cuts by the Federal Reserve. Particularly following Friday's release of the PCE price index, the Fed's preferred inflation measure.
The GBP/USD pair rose 1% amid the dollar's decline to hover near 1.252 while the euro rose to 1.0730 before falling back to the 1.06 region.
U.S. stocks closed higher on Friday, propelled by strong performances in the tech sector following encouraging earnings reports.
Oil prices lost 1% over peace talks in Cairo kicked off today. WTI was pinned near $82 while Brent hovered close to $87.50.
Escalating U.S. inflation raises worries about prolonged higher interest rates ahead of the Federal Reserve meeting this week, has also been a pressuring point for commodities. Gold too fell as focus shifted on the economic calendar for the week.
