Market Signals
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At 19:00 GMT, the Federal Reserve will release the FOMC Meeting Minutes.
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MARKET ANALYSIS
#WTI(#USOIL) π’ D π INSTAGRAM βοΈ OUR GROUP π¦ TWITTER
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Our dedicated Gold & Forex signals channel is now active again.
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Forwarded from Market pulse
Yesterdayβs data dump and the FOMC Minutes have significantly recalibrated market expectations. We are seeing a βhigher-for-longerβ narrative gaining serious traction as the U.S. economy refuses to cool down as expected.
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The Durable Goods orders for January hit their highest growth levels since early 2025, crushing estimates.
βͺοΈ The Drivers: A massive surge in equipment orders and high-scale AI infrastructure investment.
βͺοΈ Broad Strength: It wasnβt just tech; we saw significant growth in machinery, metals, and automotive sectors.
βͺοΈ The βTrump Effectβ: Tax incentives within the Big Beautiful Bill are clearly fueling commercial and industrial (C&I) lending, encouraging firms to CAPEX at the start of the year.
βͺοΈ GDP Impact: Following this data, the Atlanta Fedβs GDPNow model hiked its annual growth estimate to 2.5%.
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The Fed remains cautious and surprisingly firm. The key takeaways from the minutes released last night:
βͺοΈ Rate Hikes on the Table: The most striking note was the explicit mention that the Fed is prepared to increase rates if inflation doesnβt trend toward the 2% target.
βͺοΈ Policy Credibility: Most members warned that cutting rates too early would signal that the Fed has βsoftenedβ its mission to control inflation.
βͺοΈ The βPivotβ is Fading: The market has officially priced out the possibility of three rate cuts this year. We are now looking at a maximum of two, with βNo Changeβ becoming a dominant outlook for the first half of 2026.
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βͺοΈ Treasasuries: The 10-year yield climbed toward 4.8%, while the policy-sensitive 2-year yield hit its highest level in a week.
βͺοΈ US Dollar (DXY): The Greenback maintained its strength, supported by the robust industrial data and the Fedβs refusal to pivot.
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In a stunning move, Gold surged over 2% to break the $5,000/oz mark, despite a strong Dollar and rising yields.
βͺοΈ Geopolitical Premium: Escalating tensions in the Middle East and the stalemate in US-Iran nuclear negotiations are driving βSafe Havenβ flows.
βͺοΈ Institutional Backing: Heavyweights like Goldman Sachs and BNP Paribas remain structurally bullish, citing a global shift away from government bonds and fiat currencies toward hard assets.
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While todayβs economic calendar is relatively light, keep a close eye on Fed member speeches. The market is currently digesting the manufacturing boom versus the reality of high-interest rates.
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Key Takeaway: The manufacturing sectorβs labor market improved in January for the first time since late 2024. A strong economy gives the Fed a βGreen Lightβ to keep rates restrictive for much longer.
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Where News Meets Market Impact
Macro | Central Banks | Economic Data
Macro | Central Banks | Economic Data
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Forwarded from Market pulse
Todayβs release of the Advance Q4 2025 GDP report caught markets off guard. While the U.S. economy remains resilient on a full-year basis, the quarterly figures revealed a meaningful loss of momentum.
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The U.S. economy expanded at an annualized pace of 1.4% in Q4 2025βwell below the 3.0% forecast and sharply down from the 4.4% growth recorded in Q3.
βͺοΈ The Culprit: The record-long 43-day government shutdown late last year is estimated to have shaved at least 1.0 to 1.3 percentage points off quarterly growth.
βͺοΈ Full-Year Picture: Despite the weak Q4 print, the economy grew by 2.2% in 2025 overall, supported by a post-Q1 recovery and stronger late-year investment flows.
βͺοΈ Under the Hood: Growth was dragged lower by a sharp contraction in government spending and a slowdown in consumer spending (2.4% vs. 3.5% in Q3), only partially offset by an uptick in fixed investment.
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ποΈ2. The Political Arena: Trump vs. Democrats
The GDP data quickly turned into a political flashpoint:
βͺοΈ Pre-emptive Messaging: President Trump posted on social media just before the release, arguing that the βDemocrat Shutdownβ cost the U.S. at least two percentage points of GDP.
βͺοΈ Policy Deadlock: Democrats are conditioning future funding agreements on easing the administrationβs βOperation Metro Surgeβ enforcement measures, citing recent violent incidents involving federal agents in Minnesota.
βͺοΈ Pressure on the Fed: Trump renewed criticism of Fed Chair Jerome Powell, calling for immediate rate cuts to offset what he described as a βshutdown-inducedβ slowdown.
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βͺοΈ Equities: U.S. stocks faced selling pressure, with S&P 500 futures declining as investors weighed slower growth against persistent inflation pressures highlighted in the PCE data.
βͺοΈ Gold (XAU/USD): The yellow metal rose 0.6%, hovering near the $5,000/oz psychological level. Despite a firm Dollar, Gold continues to benefit from its safe-haven appeal amid political uncertainty and recession concerns.
βͺοΈ FX & Bonds: The U.S. Dollar Index (DXY) remains on track for its strongest weekly performance in a month. Treasury yields were broadly steady, with the 10-year yield slipping just 1 basis point as markets await further guidance from the Fed.
βͺοΈ Crypto: Bitcoin traded relatively flat, showing limited participation in the safe-haven rally seen in precious metals.
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Despite the GDP disappointment, markets continue to price in the first rate cut for June 2026. However, the current βK-shapedβ economic dynamicβwhere higher-income consumers continue to spend while others struggleβcombined with the ongoing DHS-specific βmini-shutdown,β clouds the outlook for Q1 2026.
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Volatility is set to dominate the final week of February. While the USD remains the king of FX, the Supreme Courtβs historic ruling striking down Trumpβs tariffs on Friday has sent shockwaves through global trade assumptions.
In a 6-3 decision, the US Supreme Court ruled that President Trump exceeded his authority under the IEEPA law to impose sweeping tariffs.
β’ Market Impact: This removes a major inflationary tailwind but creates a fiscal nightmare regarding potential refunds of billions in collected revenue.
β’ USD Outlook: Expect the Greenback to remain sensitive to how the Administration responds to this legal defeat.
On Wednesday, Feb 25, Nvidia reports Q4 results.
β’ The Stakes: Investors are questioning if the AI-driven tech rally is losing steam. Conservative guidance could accelerate the rotation out of big tech and into defensive sectors.
The confirmation of Kevin Warsh is currently stalled in the Senate.
β’ Impact: The growing possibility of Jerome Powell staying past May 15 is rattling rate-cut expectations. Markets are pricing in a βlimboβ state for the Fed until the leadership transition is resolved.
β’ Data Points: Watch the Consumer Confidence (Tue) and PPI (Fri) for economic pulse checks.
Speculation regarding Christine Lagardeβs early resignation is mounting, adding political risk to the Euro.
β’ Germany CPI (Friday): A weak preliminary inflation print from Germany could embolden ECB doves, potentially capping any EUR/USD recovery near the 1.0800 level.
The Yenβs post-election rally is fading. Fridayβs Tokyo CPI is expected to cool to 1.7%, potentially falling below the BoJβs 2% target for the first time in years. This would likely delay any rate hike bets for April, favoring a USD/JPY bounce.
Rumors of an imminent US strike on Iran are keeping markets on edge.
β’ Oil (WTI): Analysts eye a spike to $80 if Iran retaliates or Israel is drawn in, mirroring the June 2025 price action.
β’ Gold (XAU): Struggling at the $5,000 psychological barrier. While USD strength is a headwind, a geopolitical escalation could finally provide the catalyst for a breakout.
β’ Tue, Feb 24: US CB Consumer Confidence.
β’ Wed, Feb 25: Nvidia Earnings (After-hours).
β’ Fri, Feb 27: Germany Prelim CPI / Tokyo CPI / US PPI.
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