The DAX barely changed in pre‑market trading on Wednesday morning, opening around 24,915 points-about 0.1 % above the previous day’s close.
Thomas Altmann of QC Partners said, “The world is losing confidence in the dollar”. He noted that relative to the euro the dollar is at a four‑and‑a‑half‑year low, and against the Swiss franc it has fallen to a fifteen‑year low. He added that trust in the United States and its politics has been severely weakened, even though the dollar remains the world’s dominant currency. If this loss of confidence continues, that status could be jeopardised, leading to a more fragmented currency system in which no single currency can “step into the shoes of the dollar”.
“In these uncertain times, precious metals continue to be sought as a safe haven” Altmann said. “Technically, gold is now as heavily oversold as it was in 2020, when a correction of almost 20 % followed”.
“Today is another Fed meeting day – the third‑to‑last interest‑rate decision, with Jerome Powell presiding”. He added that former President Donald Trump will likely count down the remaining three rate meetings. “In the press conference, in addition to monetary policy, the legal investigations against Powell will probably be discussed”.
“An interest‑rate change is not expected today, and Powell can only marginally influence the Fed’s medium‑term path. Therefore, the meeting is unlikely to provide significant market momentum”.
Altmann also noted that the after‑market earnings season for the MAG‑7 stocks begins with Microsoft and Tesla, and it remains to be seen whether their stock price gains are supported by rising earnings.
On the euro‑dollar pair, the euro was weaker on Wednesday morning: one euro cost 1.2001 USD, meaning one dollar would buy 0.8333 EUR.
Gold moved higher, trading at $5,298 per fine ounce (+2.3 %) in the morning, equivalent to €141.93 per gram.
Brent crude fell slightly, with a barrel priced at $67.56 at 9:00 am German time-exactly one cent or 0 % less than the close on the previous trading day.
