Based on the early price action and the current price at $1497.10, the direction of the December Comex gold market into the extended close is likely to be determined by trader reaction to the main 50% level at $1489.10.
Investing.com - Stocks recovered most of their losses by the end of trading Wednesday, erasing an afternoon selloff after the Federal Reserve cut its key interest rate for the second time in two meetings.
Gold markets continue to hover above the $1500 level heading into the FOMC Statement and of course interest rate decision. Ultimately, this is a market that will continue to focus on the fear trade and of course the interest rate outlook.
The British pound has fallen a bit from the 1.25 level again waiting for the Federal Reserve. And as a result it’s likely that the market is going to continue to recognize this area as being crucial ahead of the Federal Reserve announcement.
The British pound has continued to hover around the ¥135 level ahead of the FOMC Meeting, interest rate decision, and of course the statement. With that being said though, there is a lot of noise just above that I am paying attention to.
The Euro is awaiting the Federal Reserve and what’s going to come out of that announcement as it continues to consolidate in the same range it has been in over the last couple of weeks.
The Australian dollar has fallen again during early trading on Wednesday as we await the Federal Reserve decision and following statement. That being the case, it looks like we are finally starting to see sellers come back into this market.
It has been an uneventful Tuesday session, as the Canadian, Mexican and British currencies are content to drift. However, that could change later in the day, as the Federal Reserve is widely expected to lower rates at its monthly policy meeting. As well, the Fed’s rate statement could also impact on the currency markets.
Here’s a look at what to expect when the Bank of England’s latest interest-rate decision is announced at 7 a.m. Eastern on Thursday.
Investing.com - Gold futures held above the key $1,500 an ounce level on Wednesday after the Federal Reserve announced the second in U.S. interest-rate cut for this year, trimming rates by 25 basis points as it did in July.
Based on the early price action and the current price at 1.1054, the direction of the EUR/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the 50% level at 1.1045 and the 61.8% level at 1.1073.
UK Inflation was weaker than expected on Wednesday and with the BOE announcement a probable non-event on Thursday, Sterling continues to be strapped by Brexit uncertainty.
Today’s Fed decision could produce a wicked two-sided trade because there is a little uncertainty ahead of the announcements. The Fed is widely expected to cut its benchmark interest rate 25-basis points. This news has been priced into the financial markets for weeks. The Fed’s monetary policy statement and interest rate forecasts are uncertain however.
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Investing.com - Wall Street slipped lower at the open on Wednesday as investors waited for the Federal Reserve’s latest interest rate decision later in the trading day.
EUR/USD is down slightly in early trading on Wednesday. The pair had a muted reaction to CPI data which came in unchanged for the year. The Fed meets later today and a volatile reaction is expected in the exchange rate.
Look for enhanced volatility with the release of the Fed announcements. Firstly, there will be a reaction to the interest rate decision. Although a rate cut is expected, there are still enough traders on the sidelines to produce a wicked reaction.
After briefly piercing to a fresh eight week high, GBP/USD has fallen under pressure in early trading on Wednesday as UK inflation data came in softer than expected.
U.K. consumer prices slowed to 1.7% year-over-year growth in August from 2.1% in July, the Office for National Statistics said Wednesday. Economists polled by FactSet expected a 1.9% rise. Core CPI slowed to 1.5% from 1.9%. The ONS said the decline came from principally games, toys and hobbies, and cultural services, clothing and sea fares. The pound was trading at $1.2452, down from $1.2501 on Tuesday.
Investing.com - Gold prices were hovering near the $1,500 level on Wednesday as investors awaited the outcome of the Federal Reserve meeting later in the day, where the central bank is expected to deliver a rate cut.
Based on the early price action and the current price at .6839, the direction of the AUD/USD on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at .6652. Look for a two-sided reaction with the release of the Fed announcements at 18:00 GMT.