Euro zone money markets are now fully pricing in a 10 basis-point rate rise from the European Central Bank in September next year, as investors bet the central bank is likely to deliver its first rate rise of the cycle sooner rather than later. The difference between the overnight bank-to-bank interest rate for the euro zone - known as Eonia - and forward Eonia rates dated for the ECB's September 2019 meeting, was almost 10 basis points on Tuesday, up from around 8.5 bps last week.
Based on Monday’s price action and the close at $1204.40, the direction of the December Comex Gold market today is likely to be determined by trader reaction to the 50% level at $1205.90.
Based on yesterday’s price action and the close at .7251, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the Fibonacci level at .7257.
Investing.com – U.S. gold futures settled a touch higher on Monday after hitting one-week highs above $1,200 an ounce, as bullion traders took in stride trade war tensions and a widely-anticipated Federal Reserve rate hike, which would typically be bearish for the yellow metal.
Coming off the best week for digital currencies since late July, bitcoin, the world’s No. 1 digital currency, was trading marginally lower on Monday. In midafternoon action, a single bitcoin (BTCUSD) was changing hands at $6,627.68, down 0.7% since Sunday at 5 p.m. Eastern Time on the Kraken exchange, and off a late-Friday high of $6,808. Crypto bulls are riding high after to total market value of cryptocurrencies has risen by more than $20 billion over the past seven sessions, perhaps, signaling a halt in a monthslong bitcoin bear market, which has the price of the digital currency down more than 50% in 2018.
Investing.com - The dollar retreated against its rivals Monday, pressured by a stronger pound amid lingering hopes of a UK-EU Brexit deal, while a firmer euro on positive remarks from European Central Bank Mario Draghi also hurt the greenback.
Investors are assessing whether the Federal Reserve’s highly anticipated interest rate hike this week could reignite a dollar rally. Here’s why some analysts are skeptical.
The dollar’s weakness moderates late Monday as investors turn their focus to the conclusion Wednesday of a two-day Federal Reserve meeting that’s seen as virtually certain to deliver a rate increase.
Gold prices continued to trade sideways consolidating in a tight range. Additionally, the trade spat between the US and China is generating unwanted volatility. Companies are now pulling back on future investment which is putting downward pressure on riskier assets. Trader’s are looking toward Wednesday’s Federal Reserve meeting which is expected to see an increase in interest rates.
Investing.com - The U.S. dollar continued to fall against other currencies on Monday, while the pound gained ground as investors awaited an interest rate decision from the Federal Reserve.The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.21% to 93.59 as of 10:21 AM ET (14:21 GMT).The Fed meets on Tuesday and Wednesday, with traders expecting a rate hike for the third time this year. The market has already priced in a 100% chance of a 25-basis-point increase.Chances of an increase in December were at 86.1%. ...
Investing.com - Stocks started lower Monday, with investors hesitant as a new batch of tariffs between the U.S. and China went into effect. But a wave of mergers produced a lot of activity in individual issues.
Other metals were mixed on the Comex, with silver futures falling 0.34% to $14.310 a troy ounce. Among other precious metals, platinum futures rose 0.30% to $835.40, while palladium futures increased 0.39% to $1,049.00 an ounce. Copper futures gained 0.16% to $2.862 a pound.
Cryptocurrencies fell on Monday, while Bitcoin eased from a two-and-a-half-week high as an academic study found that Tether does not impact its price. Bitcoin decreased 1.56% to $6,630.30 on the Bitfinex exchange, as of 8:52 AM ET (12:52 GMT). Cryptocurrencies overall were lower, with the coin market cap of total market capitalization at $219 billion at the time of writing, compared to $228 billion on Sunday.
Investors consider the health of Italy’s finances a major threat to the euro, so all eyes are on next week’s Italian budget proposal.
Investing.com – U.S. futures pointed to a lower opening bell on Friday as trade war tensions kept investors on edge.The S&P 500 futures fell 5 points or 0.18% to 2,928.50 as of 6:51 AM ET (10:51 GMT) while Dow futures lost 41 points, or 0.15%, to 26,713.0. Meanwhile tech heavy Nasdaq 100 futures decreased 28 points, or 0.37%, to 7,522.50.The U.S.-Sino trade war escalated on Monday, as U.S. duties on $200 billion of Chinese goods went into effect at 12:01 AM ET (4:01 GMT) and China accused the U.S. of bullying.China cancelled mid-level trade talks with the U.S. ...
European stocks struggle on Monday, weighed by renewed jitters, but there were some bright spots as mergers and acquisitions news buoyed shares of Sky and Randgold Resources.
European Central Bank President Mario Draghi on Monday said he expected a rise in eurozone consumer prices. Harmonized European inflation would likely hover around 1.7% every year until 2020 and 1.8% excluding food and energy in 2020, he said in introductory remarks at a hearing on economic and monetary affairs in the European Parliament. "This stable profile conceals a slowing contribution from the non-core components of the general index, and a relatively vigorous pick-up in underlying inflation." Draghi reiterated that ECB interest rates would remain at their current levels at least through the summer of 2019. Still, with inflation being a key puzzle piece for monetary policy, the euro strengthened in response. One euro last bought $1.1810, it's highest level since June, compared with Monday's session low of $1.1724.
Based on the early price action, the direction of the EUR/USD is likely to be determined by trader reaction to the uptrending Gann angle at 1.1726.
Investing.com - Litecoin was trading at $57.800 by 05:07 (09:07 GMT) on the Investing.com Index on Monday, down 10.06% on the day. It was the largest one-day percentage loss since September 5.
There are no major economic reports today, China and Japan are on holiday and the Fed starts its two-day meeting on Tuesday. Look for a low volume, low volatility trading session.
The Australian dollar was lower, with AUD/USD down 0.26% to 0.7271, while NZD/USD fell 0.19% to 0.6677 and USD/CAD gained 0.18% to 1.2938.
The news out of China seems to be having some negative impact on gold with the U.S. dollar cautiously higher.
Investing.com - Bitcoin and other major cryptocurrency prices were steady on Monday in Asia. Dubai boosted confidence in digital tokens by launching a blockchain-powered payment system on Sunday.