European markets did not continue the rally that began in Asian markets as investors looked to central bank meetings in Europe and the U.S. U.S. President Donald Trump gave fresh hope to investors as he announced on Twitter that he would meet Chinese President Xi Jinping at the G-20 summit next week in Osaka, Japan. Trade negotiations had been stalled since mid-May after the U.S. accused China of reneging on aspects of the deal that had already been agreed, with China firing back in state media.
Investing.com - With markets on hold ahead of the Federal Reserve’s policy decision, gold prices dropped on Wednesday on further signs of easing tension in the Sino-U.S. trade dispute.
Based on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at .6862. The short-covering rally could continue if the Fed comes across as excessively dovish. However, gains are likely to be limited because the Reserve Bank of Australia is also dovish on interest rates. The AUD/USD could plunge if the Fed indicates the first rate cut in 10 years will take place in September rather than July.
Is Rory Stewart heading for the number 2 spot to ruffle Johnson’s feathers? Today’s ballot and TV debate will garner plenty of interest.
Investing.com - The U.S. dollar was holding steady against a currency basket on Wednesday ahead of the Federal Reserve’s closely watched rate decision later in the day, as hopes for progress in the U.S.-China trade dispute supported market sentiment.
It’s all eyes on the FED later in the day as the Asian markets respond to news of Trump and Xi’s planned G20 Summit meeting.
Investing.com - Gold prices were unchanged on Wednesday in Asia as traders await the conclusion of the Federal Reserve’s two-day meeting.
Investing.com - The U.S. dollar and the euro traded near flat on Wednesday amid expectations for more stimulus from the European Central Bank as investors turned their attention to the Federal Reserve's closely watched rate decision later in the day.
President Donald Trump on Tuesday said he’d hold “extended” talks with Chinese President Xi Jinping at next week’s G-20 summit, as he rebuked European Central Bank President Mario Draghi over a possible move to provide further monetary stimulus.
The Dow and S&P 500 on Tuesday finish at their highest levels in about six weeks ahead of a key Federal Reserve decision, as President Donald Trump tweeted that he had a productive conversation with Chinese counterpart Xi Jinping.
The RBA policymakers mentioned that the Bank would opt for reducing the interest rates again. German ZEW Survey June Economic Sentiment data shocked market reporting -21.1 points.
President Donald Trump’s hostile response on Twitter to Draghi’s signal that the ECB could move to provide further monetary stimulus as early as next month is stoking fears that a potential U.S. trade war with its major trading partners could also be accompanied by a currency war.
Based on today’s price action and the current price at $1349.90, the direction of the August Comex gold futures contract into the close will be determined by trader reaction to the 50% level at $1349.40 and the Fibonacci level at $1352.40.
Gold markets rallied significantly during the trading session after the president of the ECB, Mario Draghi suggested that the ECB wasn’t above loosening monetary policy again. If that’s going to be the case, then it shows that central banks are still going to remain extraordinarily loose, putting an upward bias on precious metals.
The US dollar fell during trading on Tuesday, reaching back down towards the ¥180 level. That’s not a huge surprise, considering that the Federal Reserve comes out tomorrow with the statement, so a lot of people will be on the sidelines waiting to see what happens next.
The British pound broke down a bit during the trading session on Tuesday but continues to find the 1.25 level interesting for support. With that being the case, it makes sense that we would continue to find a lot of trouble in this area but as we are ahead of the Federal Reserve meeting, it would make sense that we pause.
The British pound continue to fall during the trading session on Tuesday, as we are very likely to reach towards the ¥135 level. At this point, this is a market that has been breaking down for some time and it’s showing no signs of slowing down.
The Euro went all over the place after the ECB sounded a bit more dovish during the Tuesday session. This of course has a lot of traders out there wondering about monetary policy, but don’t worry there is even more drama head as the Federal Reserve will have its announcement on Wednesday.
The Australian dollar broke down a bit during the trading session on Tuesday, but then found enough support underneath the 0.6850 level to turn around a bit. Are we forming a hammer? It’s a bit early to tell but it certainly looks as if we are trying to find buying.
The European Central Bank's policy actions are aimed at achieving its inflation target and not at the euro's exchange rate, ECB President Mario Draghi said Tuesday, hours after U.S. President Donald Trump accused the institution of working to unfairly weaken the shared currency. "We don't target the exchange rate," Draghi said in a panel discussion at an ECB-sponsored forum in Portugal, hours after he delivered a speech that indicated the central bank could move to provide additional monetary stimulus as early as next month. Those remarks prompted a tweet from Trump, who said a weaker euro would make it "unfairly easy for them to compete against the U.S.A." Later, Trump again tweeted that Germany's DAX stock index was "way up due to stimulus remarks from Mario Draghi. Very unfair to the United States." Draghi, in the panel discussion, said the ECB is committed to meeting its inflation mandate and will use all the tools it has available. Inflation has remained stubbornly below the bank's annual target of near but just below 2%. The euro was down 0.3% versus the dollar at $1.1188, while the ICE U.S. Dollar Index , a gauge of the U.S. currency against a basket of six major rivals, was up 0.1% at 97.70. Global equities received an added boost Tuesday after Trump tweeted plans for an "extended meeting" with Chinese leader Xi Jinping at the Group of 20 summit at the end of the month. Germany's DAX index was up 2.1%, while the pan-European Stoxx 600 was up 1.7%. The S&P 500 was 1.1% higher, while the Dow Jones Industrial Average advanced more than 330 points, or 1.3%.
Investing.com - Bitcoin turned negative on Tuesday after paring gains as investors mulled the impact of Facebook's (NASDAQ:FB) entry into cryptocurrency on the broader market.
With markets already moving in response to the largely surprisingly dovish comments from European Central Bank head Mario Draghi Tuesday, the U.S. leader weighed in, too.