The market takes breath after the long rally. What opportunities do traders have today?
Is the Fed holding the rate?
The Federal Funds Rate is announced at 21:00 MT time on December 11.
At the November session, the Federal Reserve cut the country’s main interest rate to 1.75%. It was the third decrease and expectedly the last during 2019. At the time, the Fed Chair Mr. Powell stated that the main inclination of the policymakers was to stop the rate-cutting cycle and observe the results. However, he also expressed the readiness to act as appropriate, leaving the space for the monetary maneuvers in case the trade war or the global economic slowdown takes the toll on the US economy. Eventually, this point was removed from the Fed statement, reassuring the public that the Fed’s monetary stance is more solid than it was previously thought. If the December rate announcement confirms that, it should strengthen the US dollar because the unchanged rate would signal the resilience of the American economy.
- If the Fed is hawkish, the USD will rise;
- If the Fed is dovish, the USD will fall.
The United States will publish a weekly update on unemployment claims on July 9, at 15:30 MT time.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.