Gold jumped to fresh highs since May 2013 as dollar is trading weak. However, as market is fully priced on a Fed’s rate cut, the risk now is to the downside with any possible Dollar strength.
As far as the Fed speakers are concerned, don’t expect anything from Fed Chair Powell. He’s giving a speech to a foreign relations group. The other speakers, well what has changed in the U.S. economy since last Wednesday when they voted 9 to 1 to hold rates steady?
London markets ticked down Tuesday as Conservative Party leadership frontrunner Boris Johnson’s campaign floundered. Former U.K. Foreign Secretary Boris Johnson faced rising scrutiny as he campaigned for leadership of the Conservative Party. Johnson, who most pundits and polls expect to become the next Prime Minister, hit back against reports of domestic turmoil with his girlfriend, Carrie Symonds, saying it was none of the public’s business.
EUROPE MARKETS European stock markets ticked down Tuesday as U.S. and China representatives began signalling ahead of the G-20 summit. How did markets perform? The Stoxx 600 (XX:SXXP) dipped 0.1% to 383.
Investing.com - Gold prices touched fresh six-year highs on Tuesday amid ongoing safe-haven demand in light of escalating tensions between the U.S. and Iran, while Federal Reserve Chairman Jerome Powell prepared to deliver remarks on monetary policy and economic outlook.
Based on the early price action and the current price at 1.1386, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to yesterday’s close at 1.1398.
The main trend is up according to the daily swing chart. There is no resistance at this time so investors should watch for a closing price reversal top to signal the presence of sellers. A closing price reversal top today will signal the selling is greater than the buying at current price levels. It could lead to a 2 to 3 day sell-off. This won’t change the trend to down, but it could alleviate some of the upside pressure.
The S&P; 500 inched down 5 points, or 0.2%, by 9:59 AM ET (13:59 GMT). The Dow fell 51 points, or 0.2%, and the tech-heavy Nasdaq composite slumped 21 points, or 0.3%.
GBP/USD pushed higher in early European trading to levels not seen since late May. The pair is threatening to break a critical resistance level that could lead to renewed upside momentum.
The US stock indices closed the last session with a decrease: NASDAQ was down by 0.32%, the S&P500; by 0.17%, and Dow Jones managed to add only 0.03%.
Tuesday’s speeches by Fed chair Jerome Powell as well as James Bullard, the noted dove on the FOMC, could serve as catalysts for more Dollar downside over the near-term.
EUR/USD corrected lower in early day trading after a four consecutive day rally. I expect the pair will be bought on dips, especially ahead of several Fed Speeches that are scheduled later in the day.
Gold’s recent winning streak continued last week as it gained 6% in value, extending Gold’s four-week increase to 10.7%. The commencement of this week has seen fresh bullish themes hit new highs, as prices break out into five-year highs!
Amidst a precariously framed U.S.-Iran confrontation backdrop, Brent crude closed lower overnight as traders lessened their odds for an immediate US-Iran escalation in this forever smouldering hot spot.
Based on the early price action, the direction of the September U.S. Dollar Index on Tuesday is likely to be determined by trader reaction to Monday’s close at 95.487. If the Euro posts a reversal top then look for the index to post a reversal bottom.
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 .6961.
Ahead of the day, Fed Chair Powell Speech and Consumer Confidence Index are must-watch events. On a broader technical view, the pair appeared to maintain a healthy uptrend.
If you lost money during the last bear market then you need a new game plan to take advantage of falling prices and the solution is not just to by gold, silver, and miners.
Based on the early price action, the direction of the NZD/USD is likely to be determined by trader reaction to the downtrending Gann angle at .6652. This is the last potential resistance angle before the .6682 and .6686 main tops.
Negative comments ahead of trade talks and rhetoric from Iran in response to the prospect of sanctions dampen the mood ahead of the European open.