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.

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
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
More View more
Real Time News
  • US equities hovering near session lows in wake of the FOMC statement and press conference from Fed Chair Powell. The S&P 500 Index is currently trading -2.7% lower with 30-minutes to go until the close. $SPX $SPY $ES_F #Stocks https://t.co/pT56yQF4md
  • Fed Chair Powell: -Have not made decision on removing bank restrictions -Some housing tightness is passing phenomenon -Large increases in home prices unlikely to be sustained -Corporate defaults have been fewer than expected -We haven't seen as much scarring as we feared
  • Fed Chair Powell: -Emergency lending facilities were very helpful to economy -Haven't talked with US Treasury about emergency tools
  • Federal Reserve holds its policy interest rate and pace of asset purchases steady as expected. Get your $XAUUSD market update from @RichardSnowFX here:https://t.co/8CIIMYDUtr https://t.co/0U48GH20aM
  • Fed Chair Powell: -World has been struggling with disinflationary forces for a while -US inflation dynamics won't change much over near term -More concerned about recovery than pickup in inflation -Inflation resembling past decades seems unlikely
  • Fed Chair Powell: -Talk of tapering asset purchases is premature -Just too early to be talking about dates on tapering bond buying plans -Tapering would be gradual when we do it -Whole focus on exit is premature $SPX $NDX $DJI $USD $DXY $XAUUSD $TNX
  • Fed Chair Powell: -Pandemic, new virus strains still provide considerable downside risks -Will take quite a while to get to herd immunity -Vaccine rollout likely to be a struggle -Nothing more important to economy now than vaccinations
  • Fed Chair Powell: -Coming months' rise in inflation will be transient -We will be patient and not react when we see modest bumps in inflation -Very unlikely that we'll see troubling inflation -Not going to adopt a formula on inflation
  • Fed Chair Powell: -Financial vulnerabilities are 'moderate' right now overall -Asset prices have recently been driven by vaccines, fiscal steps -Link between interest rates and asset prices not so strong
  • Fed Chair Powell: -Fiscal response to economic downturn has been strong and sustained -We are a long way away from 'returning to normal' with about 9 million Americans still unemployed -The real unemployment rate is closer to 10% -Very appropriate to be highly accommodative
Gold Price Slumps on Hawkish Remarks from Fed Members, Oil Shrinks

Gold Price Slumps on Hawkish Remarks from Fed Members, Oil Shrinks

Nathalie Huynh,

Talking Points:

  • Gold price slumped after comments from Fed members raised expectation for rate hikes
  • Oil price dropped as inventory data from two sources confirmed huge stockpiles
  • Copper price sank together with stocks as investors sold risk assets

The US dollar continued to bounce back due to risk-off sentiment and profit taking activities before the Easter long weekend. As a result, commodity prices lowered across the board.

Oil prices sank after inventory data from U.S. Department of Energy showed a build of +9.36 million barrels for crude oil, much larger than the expected +2.48 million. This depressed prices further aftera similar number from the American Petroleum Institute yesterday. A few positive signs including shortfall in Cushing and gasoline inventories did not manage to deter bearish sentiment. Canadian dollar and Russian rubble were sold off accordingly. There is little hindrance on the downside from here toward a support area of 37.71-38.21.

Copper prices slid together with other metals on the back of stronger US dollar and losses in Asian equities. The Shanghai Composite, Hang Seng, ASX and Nikkei were in the red as growth concerns resurfaced and investors sold risk assets including commodities. Low liquidity before the holidays made matters worse. Nevertheless, a firm support level at 2.2035 may restrict the downside until next week.

Gold was the second worst performer among metals with a 1.1 percent loss, only second to iron ore which was down 3.7 percent. Gold prices traded near one-month low after a string of hawkish remarks from Federal Reserve members, the latest comments came from St Louis Fed President Bullard that a hike in April is possible. Optimistic statements from other Fed members: Lacker, Williams, Lockhart and Evans also raised market’s expectation for future rate hikes.

Need a hand to start trading: Free Guides

Want to read market’s momentum: Speculative Sentiment Index

Losing Money Trading Forex? This Might Be Why.

GOLD TECHNICAL ANALYSIS – Gold prices dropped well below the support trend line to approach a support area of 1191-1207.6. Downward momentum highlights weakness in gold prices, even as risk assets are posting losses. Investors should be cautious of a stagnation.

Gold Price Slumps on Hawkish Remarks from Fed Members, Oil Shrinks

Daily Chart - Created Using FXCM Marketscope

COPPER TECHNICAL ANALYSIS – Copper prices slipped near 2.2300 mark as commodities declined. However it has so far traded above a recurrent daily low at 2.2295 and the level may act to stem further downside developments. Prices remain weak on the downside.

Gold Price Slumps on Hawkish Remarks from Fed Members, Oil Shrinks

Daily Chart - Created Using FXCM Marketscope

CRUDE OIL TECHNICAL ANALYSIS Oil prices headed towards a support level at 38.99 as the 2-month climb set to pause. A break of this level would be bad news for the oil bulls after the recent progression toward $40 mark. Downward momentum is prevalent.

Gold Price Slumps on Hawkish Remarks from Fed Members, Oil Shrinks

Daily Chart - Created Using FXCM Marketscope

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

To receive Nathalie’s analysis directly via email, please SIGN UP HERE

Contact and follow Nathalie on Twitter: @nathuynh

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

DISCLOSURES