More on Rate Cut Probabilities
I’m keeping a close eye on this for the while… 1 month ago, we had 37% chance to be at 125-150 (at the jan meeting) … then we hard dropped to 15-17% chances. I’m looking for a slow climb back up to 37-40% area (resistance)… A break out will most likely occur once we close above that. https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html
Now.. you can see this on the historical graph for Jan 20 meeting…
And push it to the March meeting…
And even furthur at the Jul meeting …
You can almost see the future where this is going… each cut not happening now… doesn’t alleviate pressure on the probabilities of a cut.. but adds more pressure going forward that will get a cut! We are very much still in an easing cycle. I guess the inverse would be true if we were in a hiking cycle.
Thanks Patrick. I think this is quite important for gold price at the moment. Forward expectations regarding rates do seem to have a major effect.
Indeed… for now. Gold react to many different things. Soo fascinating. That is why price action is ultimate truth.
Yes, TLT and TIP breaking out on weekly charts. Both also almost oversold on weekly charts, which is a good sign.
It’s building up that way. FUEL!!!