The most pivotal moment in monetary-policy history took place earlier this month with Federal Reserve Chairman Jerome Powell flipping the script from “the year of inflation to the year of disinflation”.

At the FOMC press conference on February 1, Jerome Powell didn’t just double down on his disinflation comments – he started his whole speech by declaring that the “disinflationary cycle has begun.”

In fact, Powell used the word "disinflation," 13 times at his press conference, which is a significant turnaround from prior meetings.

And just in case anybody didn't hear him the first time around, Powell made sure to drop the word "disinflation" over a dozen times during his speech at the Economic Club of Washington, last week.

Powell doesn’t live under a rock. He is unquestionable the world’s most powerful and influential Central Banker.

He knows exactly what he's doing and his every word is carefully orchestrated to achieve a very specific market reaction.

In these case, that's “disinflationary” optimism.

Looking ahead, this week’s hotly awaited U.S Consumer Price Inflation data will put the Fed’s new disinflationary messaging to the test. The January Consumer Price Index data, will either confirm two more 25 basis points rate hikes this year or supercharge the 'Fed pivot' narrative.

Elsewhere on the radar this week will be the release of the FOMC Monetary Policy Meeting Minutes, scheduled for release on Wednesday.

Traders will be closely monitoring whether the dovish comments made by Jerome Powell and several voting members of the Fed's policy-setting committee match up with the notes from the latest Meeting Minutes or completely contradict them.

Whichever way you look at it, one thing is clear. This is the start of a more different and dovish narrative from the Fed, which ultimately presents an extremely bullish backdrop for Commodity prices ahead.

Since the beginning of this year, a long list of leading Wall Street banks from Goldman Sachs, JPMorgan to Bank of America have repeatedly beat the drum that higher prices are coming – predicting “Commodities will be the best-performing asset class in 2023”.

And now, we may finally be on the verge of seeing why! That’s welcoming news for the bulls, but painful for anyone sitting on the sidelines, who must now decide how much FOMO they can handle.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD continues to grind out further losses

EUR/USD continues to grind out further losses

EUR/USD continued to drift into the basement on Wednesday, clipping into a 54-week low and settling within touch range of 1.0550. Fiber continues to shed weight on the charts as broader FX markets pivot full-bore into holding the Greenback. 

EUR/USD News
GBP/USD sheds weight for a fourth straight day on Wednesday

GBP/USD sheds weight for a fourth straight day on Wednesday

GBP/USD eased further into the low end on Wednesday, trimming further south of the 200-day Exponential Moving Average in a one-sided bearish decline as the pair closes in the red for a fourth consecutive trading day.

GBP/USD News
Gold extends slide to fresh two-month low

Gold extends slide to fresh two-month low

After shedding some ground throughout the first half of the day, the US Dollar is back in fashion. XAU/USD trades at its lowest in two months in the $2,580 region and is technically poised to extend its slump.

Gold News
Australia unemployment rate expected to remain steady for third straight month in October

Australia unemployment rate expected to remain steady for third straight month in October

The Australian Unemployment Rate is foreseen stable at 4.1% in October. Employment Change is expected at 25K, much lower than the 51.6K posted in September. AUD/USD is under pressure and may soon pierce the 0.6500 mark. 

Read more
Trump vs CPI

Trump vs CPI

US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis. 

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Majors

Cryptocurrencies

Signatures