U.S. stocks extended declines after President Donald Trump signaled he would keep tariffs on China until it was clear the country was complying with terms of a future trade deal.
Stocks lost early gains following a report that some U.S. officials are worrying China may renege on pledges it made with the U.S. around trade talks.
President Donald Trump on Wednesday, ahead of a trip to Ohio, told reporters on the South Lawn that he would leave tariffs on China for a "substantial period of time." "We are not talking about removing them, we are talking about leaving them," he said. "We have to make sure that if we do the deal with China, that China lives by the deal," he said. Trump said the deal "is coming along nicely." There's currently a 10% tariff on an array of Chinese goods.
Tuesday’s price action in the Indian rupee, that saw the currency hit a seven-month high and then retreat offers a warning to investors about emerging markets.
The U.S. dollar bucks its recent downtrend on Wednesday ahead of the Federal Reserve’s monetary policy update.
Based on the early price action, the direction of the April Comex gold market the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at $1309.80 and the uptrending Gann angle at $1298.80.
Based on the early price action, the direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1357 and the downtrending Gann angle at 1.1350.
Volatility should be the theme today in the gold market because the Fed announcements contain multiple components. Firstly, there’s the economic projections which are expected to show the Fed will cut the number of potential rate hikes. This is potentially bullish for gold prices.
Markets in Europe drifted lower, led by German chemical company Bayer AG as a U.S. court judgement blamed Bayer’s weedkiller product Roundup for causing a case of cancer. German equities led the declines in Europe, with the DAX (DAX) falling 0.94% from Tuesday’s close to 11680.7, giving back Tuesday’s gains of 0.85%. The U.K.’s FTSE 100 (UK:UKX) was essentially flat at 7,321.7, having climbed 0.6% Tuesday.
Trading on the market recently is pretty tough. The price is not moving in trends, often changes direction and creates many false breakouts.
Traders are going to have to decide which is more important, a dovish U.S. Federal Reserve or fear of a breakdown in U.S.-China trade talks. A dovish Fed would be bearish for the Dollar/Yen because lower interest rates would make the dollar a less-attractive investment. While trade talk concerns could encourage safe-haven demand for the dollar.
Investing.com - Gold prices were little changed on Wednesday, as investors looked ahead to a policy statement by the Federal Reserve that will shed fresh light on its interest rate plans for the rest of the year.
The gold prices bounced higher during Tuesday’s session using the 50 Day EMA as support. The silver prices rallied higher during yesterday’s session but ran into resistance at the $15.50 level and also the 50 Day EMA slope. With USD going weak against major currencies of the world, the silver prices will continue to drive value and pullbacks will offer a nice buying opportunity until it breaks below the $15 level.
The AUD went back and forth during yesterday’s trading session, hovering around the psychologically important 0.71 level. Its likely that the region above the 200 Day EMA will continue to attract buyers and trying breaking above the major resistance level which extends up to the 112 level.
The pair is trading rangebound as both sides are lack strength for a breakout ahead of FOMC update.
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 uptrending Gann angle at .7083 and the 50% level at .7079.
Investing.com - The dollar was slightly higher against most of its peers in early trading in Europe Wednesday, supported overnight by fresh reports suggesting a lack of progress in trade talks with China.
Investing.com - Gold prices rose on Wednesday in Asia as traders awaited the Federal Reserve's latest monetary policy statement later in the day.