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Fed Governor Brainard emphasized at the beginning that the normalized balance sheet size will be smaller than before. As interest rates rise, the balance sheet policy will change. And given the improving global economic conditions and continued growth, it should be prepared to raise interest rates "soon", but Brainard still supports the Fed to maintain the current balance sheet until interest rates rise further. Brainard then further elaborated that U.S. inflation has gradually climbed toward the target and the United States is approaching full employment. However, Brainard also said that further strength in the U.S. dollar will put investment under pressure, but now we still see signs that business investment is growing again. The risk outlook has become balanced. The Federal Reserve will definitely consider continuing to gradually raise interest rates.
When talking about the impact of global economic development on the Federal Reserve's interest rate hikes, Brainard said that the economies of China, Japan and Europe are developing stably. Problems that have emerged over the past two years from Europe to China have left the Fed "shackled" and are now putting foreign economic growth on a firmer footing than before. Federal Reserve Chairman Yellen will deliver a speech on Saturday (June 2), Beijing time. The market has now seen that in addition to talking about the conditions for raising interest rates that are very mature, Brainard also mentioned the "balance sheet reduction" process. If Yellen's speech in the early hours of Saturday morning If the tone of the speech is indeed similar to Brainard's, with a neutral to hawkish tone, then financial markets should be careful.
Shen Congjia's gold evening trend analysis and operation ideas
There is a clear contrast between the daily level of gold and the small cycle pattern. Yesterday's positive cross on the daily line is relatively unfavorable for the short-term continued downward trend, and there is a certain upside possibility for the market outlook. In the small cycle, we can see that yesterday's rebound did not break through the upper track suppression of the downward channel, and the hourly pattern is more obvious. Therefore, the author reminds today's Trading requires extreme caution. In the hourly chart, yesterday's U.S. trading session continued to rise, and only one negative line retreated. The low point that needs to be stepped on is the support position that needs to be focused on today's Asian and European trading. If it breaks down effectively during the day, it can be stepped back and shorted. This order is only recommended for aggressive friends. The light position participates in promptly moving the stop loss down to protect the profit after the short order is profitable. For long orders, the author recommends not to consider it for the time being. If gold cannot reach a new low today and the daily closing line is strong, it will not be too late to choose an opportunity to go long tomorrow.
Gold operation strategy
If it falls back, go long and be steady, consider the target and look at it
If it rebounds, but the short stop loss is below the target,