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US dollar index hits new highs? Fed may raise rates by 75 basis points? What will happen to gold?

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Overnight Market Review (2022.6.13) U.S. inflation exploded again last Friday, the U.S. dollar hit the highest in four weeks, U.S. stocks fell sharply, and gold prices rose. This week, the focus is on U.S. retail sales, the Fed’s interest rate decision, the Bank of England’s interest rate decision and the Bank of Japan’s interest rate decision. .

Global Gold: Gold prices rebounded in choppy trade last week as the focus turned to economic risks after rising U.S. inflation data supported bets on aggressive interest rate hikes. Gold futures rose 1.2% to $1,875.50 an ounce.

After the U.S. reported record-high inflation on Friday, analysts see the odds of the Fed raising rates by 75 basis points this week are increasing, with Barclays being the first to call out that the Fed is justified in raising rates by 75 basis points this week. institution.

U.S. stock index futures plummeted and the U.S. Treasury yield curve inverted before the market opened on Monday. Markets are worried that the Federal Reserve’s aggressive interest rate hikes to curb inflation, which has hit a new high in more than four decades, will lead to a recession.
Fed interest rate futures show that the market sees a 30% chance that the Fed will raise interest rates by 75 basis points at its June meeting, and an 83% chance that it will raise interest rates by 75 basis points in July.

Trading strategy deployment: it is recommended to go short at high levels

All transactions involve risks, the above analysis is for reference only. When placing an order, be sure to set the lot size and remember to set the stop loss.

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Risk Warning : Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. 

Risk Warning:
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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Ultimate Pinnacle Limited is a limited liability company established in Belize as an operating subsidiary within the Lepanto Group of companies (collectively “Ultimate Pinnacle”) under Registration No. 173474 and having its registered address at No. 1 Corner of Hutson Street and Marine Parade, Belize City, Belize.

Lepanto Financial Advisers Limited is the holding company of Ultimate Pinnacle Limited. (Address: Fifth Floor, Suite 23, 63/66 Hatton Garden, London, England, EC1N 8LE). All services and products accessible through the site www.upfxtrade.com are provided by Ultimate Pinnacle Limited with the registered address Suite 305, Griffith Corporate Center P.O Box 1510, Beachmont Kingstown St.Vincent & the Grenadines.
Ultimate Pinnacle Limited is a limited liability company established in Belize as an operating subsidiary within the Lepanto Group of companies (collectively “Ultimate Pinnacle”) under Registration No. 173474 and having its registered address at No. 1 Corner of Hutson Street and Marine Parade, Belize City, Belize.

Lepanto Group Pty Ltd is authorised and regulated by the Australian Securities & Investments Commission, ASIC (ACN: 072 424 830)

Ultimate Pinnacle Limited is a company authorised and regulated by the National Futures Association (NFA ID: 0537666)

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