gold

European Open Preview – Dollar shows weakness despite not-so-dovish FOMC meeting

Posted on December 20, 2018 at 9:20 am GMT

Fed’s dot plot indicates two rates hike next year, down from three Bank of England to hold rates steady amid Brexit drama EU and Italy find common ground on budget plan Fed not as dovish as expected Shares in the US and Asia tumbled after the Federal Open Market Committee (FOMC) raised interest rates by a quarter point to 2.25-2.5% in a widely expected decision and hinted further tightening next year despite the hazards in global economic conditions. The central bank [..]

European Open Preview – Fed unlikely to be as dovish as market pricing implies

Posted on December 19, 2018 at 8:42 am GMT

The spotlight today is on the Fed’s decision; markets seem positioned for an extremely “dovish hike”, which poses an upside risk for the dollar The BoJ will also meet, though that gathering may be less exciting Meanwhile, oil prices resumed their broader collapse Fed may strike a less dovish tone than investors anticipate The main event today will be the Fed’s policy decision at 1900 GMT, which will be followed by a press conference from Chair Powell. A quarter-point rate increase [..]

European Open Preview – Dollar softer on bets volatility will stay Fed’s hand

Posted on December 18, 2018 at 8:48 am GMT

Risk sentiment in dire straits; US stocks close at fresh lows, yen shines Dollar drops as Fed rate-hike expectations fade even further Kiwi buoyant after New Zealand’s business sentiment recovers S&P 500 closes at 14-month low as fear dominates greed Risk sentiment remained sour to start the week, in the absence of any clear catalyst, other than a flurry of headlines suggesting a US government shutdown may be on the cards this holiday season. The benchmark S&P 500 index fell [..]

Technical Analysis – Gold creates bearish retracement; stays bullish in medium term

Posted on December 17, 2018 at 9:04 am GMT

Gold prices completed two consecutive bearish days in the preceding week and retained a negative correction mode, following the pullback on the five-month high of 1250.44. The yellow metal holds beneath the 20- and 40-simple moving averages (SMAs) in the 4-hour chart, however, the momentum indicators are turning slightly higher. The RSI indicator is pointing up in the bearish zone, while the %K line of the stochastic oscillator posted a bullish crossover with the %D line before entering the overbought zone. [..]

European Open Preview – Euro softens as ECB ends QE, but turns cautious

Posted on December 14, 2018 at 8:50 am GMT

Euro ticks down as ECB ends QE, but downgrades balance of risks Aussie and kiwi fall sharply after key Chinese data disappoint EU refuses to renegotiate Brexit deal; sterling rallies may remain short-lived US retail sales data due out today Euro inches lower despite Draghi trying his best not to seem dovish The European Central Bank (ECB) officially announced the end of its crisis-era QE program yesterday, as expected. The Bank revised down its growth and inflation forecasts, though that [..]

European Open Preview – Pound advances as May survives; ECB meeting eyed

Posted on December 13, 2018 at 8:39 am GMT

Sterling advances as PM May survives leadership contest, but sustained rally unlikely ECB meets today; Draghi’s tone will be crucial for the euro SNB meets as well, likely to maintain a dovish stance Meanwhile, reports China may open its economy boost risk sentiment Pound soars as May survives, but odds of a sustained rally slim Sterling surged on Wednesday, as it became increasingly clear throughout the session that PM May would survive the no-confidence motion, amid a plethora of Tory [..]

European Open Preview – Pound under pressure as Tories trigger leadership contest

Posted on December 12, 2018 at 9:12 am GMT

Sterling near 20-month lows as Conservative lawmakers trigger no-confidence vote in Theresa May; ballot to be held today Risk appetite recovers as Trump and China stoke hopes for a deal Euro remains on the back foot ahead of tomorrow’s ECB meeting US inflation data on tap Sterling crumbles as Tories trigger leadership challenge The British pound sank to a fresh 20-month low versus the dollar on Tuesday, following reports that “rebels” within Theresa May’s Conservative party nearly have the numbers [..]

European Open Preview – Brexit vote delayed and pound pays the price

Posted on December 11, 2018 at 9:03 am GMT

US-China discuss trade talks schedule, but markets keep risk-off behavior May delays Brexit vote in Parliament; pound drops below 1.26 Italian budget adjustments not ready yet US-China discuss roadmap for trade talks The Chinese Vice Premier, Liu He, is said to have exchanged views with the US Trade Representative, Robert Lighthizer and the US Treasury Secretary, Steven Mnuchin, on how to move trade talks forward on Tuesday, giving some grounds for optimism that a worsening trade war is not in the interest of either nation. [..]

Technical Analysis – Gold falls following rebound to 5-month high; bullish in medium term

Posted on December 10, 2018 at 9:45 am GMT

Gold prices pared some gains on Monday, following the new five-month high of 1250.44 that was achieved in the preceding week. The yellow metal holds above the 20- and 40-simple moving averages (SMAs) in the 4-hour chart, however, the momentum indicators are turning lower. The RSI indicator is pointing down after hitting the overbought zone, while the %K line of the stochastic oscillator posted a bearish crossover with the %D line. A bearish correction would drive prices until the 1243 support level, taken from the [..]

European Open Preview – Dollar moves off lows ahead of US jobs report but weighed by talk of Fed pause

Posted on December 7, 2018 at 9:14 am GMT

US dollar edges up from lows as risk sentiment improves, but expectations that the Fed could soon pause its rate hike cycle limit gains US Treasury yields fall sharply on Wall Street Journal report that Fed is considering “wait-and-see” approach Pound steady despite May pondering whether to delay Brexit vote Oil under pressure again as OPEC struggles to reach output agreement, awaits for Russia to join talks before making decision Dollar firmer ahead of nonfarm payrolls report The US dollar [..]

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