News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • ...that is my take on the panic around tapering. I'm not advocating for expediting rate hikes, but to continuously punt easing back on stimulus by even a marginal amount only compounds the market's dependencies - increasing moral hazard.
  • 'The economy and markets are so strong that we can't reduce the $120 billion per month asset purchases. Further, if only we can continue this path for an indefinite future, the market will absorb the external risk on its own.'
  • Also, here is the schedule of FOMC meetings from now through the end of 2022. If the Fed doesn't signal taper today, next scheduled time is Nov 2nd and 'quarterly' event time is Dec 14th. Will taper be easier w/ one or two more high CPI updates? https://t.co/XFrwo24xbD
  • Here is my FOMC scenario table going into the rate decision. While a delay in the taper call seems feasible with the market wobble, there will always be wobbles before and the existential threat of a mkt tantrum. Always a hostage? https://t.co/MIDk28lQBS
  • Gold prices are pushing higher so far this week and the FOMC is waiting in the wings with their September rate decision. Get your market update from @JStanleyFX here:https://t.co/rVrJnq0Rgh https://t.co/td0i0PTQZz
  • RT @CEOAdam: SO FASCINATING! Dogecoin Poll was by far my highest ever read tweet. In 24 hours, 4.2 million views, my most ever retweets, mo…
  • Just checked the Fed's website to see if they accidently release the SEP (Summary of Economic Projections) early by accident - happened once before. Nope, not live yet; but this will be the link when it is: https://t.co/GcANEDVowq
  • Gold Price Forecast: XAU/USD Holds Support Ahead of the Fed - Gold Levels https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/09/22/Gold-Price-Forecast-XAU-USD-XAUUSD-Holds-Support-Ahead-of-the-Fed-Gold-Levels.html $Gold https://t.co/JSZNMCc11w
  • RT @IGcom: What to expect from FED today? Join @JeremyNaylor_IG and @MartinSEssex live on the IG platform at 18:50 (UK) for the live announ…
  • AUD/USD is little changed from the start of the week following the limited reaction to the Reserve Bank of Australia (RBA) Minutes. Get your $AUDUSD market update from @DavidJSong here:https://t.co/t44yC8zG0K https://t.co/AJCTyiAWjx
Gold Price Lifted by ECB Easing Package, Oil, Copper Price Rally

Gold Price Lifted by ECB Easing Package, Oil, Copper Price Rally

Nathalie Huynh,

Talking Points:

  • Gold price reached up after ECB’s rate cuts and heightened market volatility
  • Oil pricejoined risk rally to break above 38.36 resistance
  • Copper price sustained above support trend line in today’s mild recovery

At March meeting, ECB cut deposit, refinancing and margin lending rates among other expanded asset purchases and long-term refinancing operation (TLTRO). Risk buying emerged in selected assets after the event, although heightened market volatility resulted in some contradicting moves. In its economic forecast, the bank foresees oil price to average $34.9 per barrel in 2017.

Both market fluctuation andeasing implications helped to boost gold price toward a resistance at $1275, just ahead of yearly high at 1307.6. These rate cuts in the Eurozone and Brexit woes in UK make the US the only country which may raise interest rate this year. Even so, potential delay is imminent given a lacklustre in US inflation and mixed jobs gains, thus market expects the Federal Reserve to hold rate at FOMC meeting next week. Gold gains solid support as a result of this situation.

Oil price and copper price also ticked up as part of a broad risk rally following ECB meeting and Draghi’s Q&A session. Although both growth and inflation expectation for the Eurozone were downgraded in the bank’s economic forecast, yesterday’s extensive package ticked all the boxes of a stimulation program. Asian equities and commodities reactive positively throughout today, including risk currencies like AUD.

Need a hand to start trading: Free Guides

Want to read market’s momentum: Speculative Sentiment Index

GOLD TECHNICAL ANALYSIS – Gold price finally rose above 1275 past daily high although muted momentum may not provide enough lift to reach up to 1307.6 yearly high. Support on the downside has solidified after today’s event. From here the bet is about how high bullion can extend on the topside.

Gold Price Lifted by ECB Easing Package, Oil, Copper Price Rally

Daily Chart - Created Using FXCM Marketscope

COPPER TECHNICAL ANALYSIS – Copper price mostly remained above support trend line, although intraday prices have skipped the support during last 4 sessions. Next week we may see a test of will between more sideways trading and the trend line. Weak momentum does not support a retracement to 2.3020 peak.

Gold Price Lifted by ECB Easing Package, Oil, Copper Price Rally

Daily Chart - Created Using FXCM Marketscope

CRUDE OIL TECHNICAL ANALYSIS Oil price finally broke 38.36 resistance level as part of a risk-on sentiment after ECB’s easing package. Upward momentum is building up thus oil may look to higher levels until the end of this week’s trading.

Gold Price Lifted by ECB Easing Package, Oil, Copper Price Rally

Daily Chart - Created Using FXCM Marketscope

--- Written by Nathalie Huynh, Currency Strategist for DailyFX.com

Losing Money Trading Forex? This Might Be Why.

Contact and follow Nathalie on Twitter: @nathuynh

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES