Based on the early price action and the current price at $1511.40, the direction of the December Comex gold futures contract on Tuesday is likely to be determined by trader reaction to the uptrending Gann angle at $1504.40.
Based on the early price action and the current price at 1.1020, the direction of the EUR/USD is likely to be determined by trader reaction to the short-term 50% level at 1.1019.
Markets react relatively sluggishly to the events of the beginning of the week. Oil remains at elevated levels, climbing13% since the beginning of the week.
Investing.com - The Canadian dollar was weaker against the U.S. dollar on Tuesday after soft manufacturing data and falling oil prices erased gains from the prior session.
Investing.com – Wall Street ticked lower on Tuesday as stronger-than-expected industrial production and manufacturing output figures put another dent in hopes for a rate cut from the Federal Reserve, whose regular policy meeting kicks off later.
The recent sell-off from multi-year highs indicates that gold investors have cut the chances of a U.S. recession, the current sideways price action indicates investors are searching for a new catalyst. The 25-basis point rate cut is priced in. Traders are also feeling more optimistic over U.S.-China trade relations.
Investing.com -- U.S. industrial production and manufacturing output both rose by more than expected in August, bucking the trend of a global slowdown this year against the backdrop of the U.S.-China trade war.
The ZEW Indicator of Economic Sentiment rose 21.6 points to a -22.5 reading in September. Economists polled by FactSet had forecast a reading of -37.9. "The outlook remains negative. However, the rather strong fears that financial experts had in the previous month regarding a further intensification of the trade conflict between the USA and China did not come true. And there is still hope that a no deal Brexit can be avoided. In addition, the European Central Bank is attempting to reduce the economic risks in the eurozone by further easing its monetary policy," said ZEW President Professor Achim Wambach.
It is red across the board, as the New Zealand, Australian and Chinese currencies have all posted modest gains against the U.S. dollar. With no key indicators on the schedule, it could be a lackluster session on Tuesday.
Investing.com - U.S. futures were slightly lower on Tuesday as heightened geopolitical risk and fading hopes for an interest rate cut from the Federal Reserve weighed on sentiment.
Although crude oil traders are likely to raise their risk premium, and risky asset investors will remain on their toes due to the simmering conditions in the Middle East, investors will begin to gradually shift their focus to the start of the two-day U.S. Federal Reserve monetary policy meeting which starts on Tuesday.
The minutes show that the RBA was ready to consider further policy easing as needed to support growth and inflation targets, while it was reasonable to expect an extended period of low interest rates.
Investing.com -- Germany's ZEW economic sentiment index, the first major confidence indicator of the month in Europe, rose to -22.5 in September from a seven-year low of -44.1 in August, amid signs of progress in the U.S.-China trade dispute and the European Central Bank's monetary policy easing package last week.
Uncertainty over how the U.S will respond to the attacks on Saudi oil feeds could leave the markets tentative ahead of tomorrow’s FOMC decision.
British Prime Minister Boris Johnson and European Commission President Jean-Claude Juncker agreed Monday to ramp up talks on securing an elusive Brexit deal, but the two sides gave starkly different assessments of how far apart they are.
Currencies linked to oil prices pop on Monday after an attack on Saudi Arabian oil production facilities over the weekend knocked out 5% of the world’s production, with some analysts speculating that it could take months to bring the facilities back online.
Investing.com - Stocks moved lower overall on Monday in the wake of the drone attacks on Saudi Arabian oil facilities and oil fields.
With no major events to kick off the week, the Canadian dollar and Mexican peso are showing little movement. The British pound is showing some volatility and has retracted after ending last week with sharp gains.
Gold markets gapped higher but have then pulled back significantly bearish pressure in a market that is trying to come to terms with the lot of negative issues out there that are just waiting to jump into the fray.