This week started with the talk of the United States banning Russian oil exports, so XBR/USD saw $130 a barrel. Then the ban became reality. What does it really mean for the market?
Gold edges down ahead of Fed decision
On Wednesday, gold went down in Asia trade ahead of the Federal Reserve decision on the interest rate. Market participants are waiting for clues about the tempo of further tightening of the US monetary policy in 2018.
Gold futures went down by 0.08% on the Comex exchange demonstrating a reading of $1298.30 an ounce.
Traders are currently focused on a two-day gathering of the Federal Committee for Open Market Operations to be concluded on Wednesday.
Many traders hope that the main US financial institution will have interest rates increased for the second time in 2018, and financial markets are awaiting clues that will make it clear whether the Fed is going to lift the interest rate 3 or 4 times this year.
Meanwhile, the evergreen buck proceeded with the upward movement that started on Thursday. Reflecting the actual strength of the greenback versus a bunch of key currencies, the US dollar index headed north by 0.06% coming up a reading of 93.
Yesterday, demand for the number one precious metal edged down, and market participants shifted to the evergreen buck as well as more risky assets after the upbeat outcome of the long-awaited meeting between American President Donald Trump and North Korean dictator Kim Jong-no. They both signed an important document telling that American president is obliged to provide security guarantees for North Korea in exchange for 100% denuclearization of the Korean peninsula.
By the way, assets, whose actual value is denominated in US dollars, turn out to be sensitive to the dynamics of ups and downs of the greenback. Strengthening of the US currency makes gold less affordable for those investors who hold foreign currency and, it also diminishes the demand for this non-ferrous commodity.
Silver futures went down by 0.2% being worth $16.855 an ounce.
For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on November 5, 14:30 GMT+2.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.