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Powell's comments more important than Fed's rate decision, watch the DXY - FXTM

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The market will be paying closer attention to the Federal Reserve Chair Jerome Powell’s press conference than the actual rate announcement this afternoon, according to FXTM. A so-called “hawkish cut” could push the U.S. dollar index above 98, says FXTM market analyst Han Tan. “Powell’s remarks are set to have a bigger influence over the markets rather than the actual FOMC decision itself,” Tan writes. “Should Powell signal a ‘hawkish cut’, whereby the Fed deems the U.S. economy as having sufficient “insurance” after this month’s 25-basis point adjustment, that could propel DXY back above the 98 psychological level.”

By Anna Golubova of Kitco News; agolubova@kitco.com

 

Fed’s patience is a headwind for gold — TD Securities 

Wednesday October 30, 2019 09:59

TD Securities is pricing in a hawkish third rate cut of the year for this afternoon, with the Federal Reserve signalling patience when it comes to future monetary policy moves. “It is decision day for the Fed, where our macro strategists are expecting a third consecutive 25bp cut, but are expecting the Fed to communicate patience thereafter,” say strategists at TD Securities. This is likely to put significant pressure on gold in the short-term, the strategists add. “With rates potentially on hold for the remainder of the year, equities surging to all time highs and a persistent sense of optimism on the trade front, the yellow metal could face significant headwinds in the near term,” they write. “The stalling of the rally continues to see momentum signals fade, as the trigger for modest long liquidations has crept higher from $1,475/oz yesterday, to $1,482/oz today, which increases the risk of a swift gap to the downside should the market receive a ‘hawkish’ cut.

By Anna Golubova of Kitco News; agolubova@kitco.com

 

Volume is gold remains depressed, eyes on FOMC: MKS PAMP Group

Wednesday October 30, 2019 09:59

Comex volume in gold remains suppressed as investors wait for the Federal Reserve’s rate decision, scheduled for this afternoon. “Volumes across Comex remain depressed as participants both keep their powder dry into today’s FOMC meeting in addition to the lightening of positioning following the recent move to USD $1,518 and then back-underneath USD $1,500,” writes MKS PAMP Group. Solid support is at the $1,475 level, adds MKS. “Supportive interest remains evident through USD $1,480 - $1,475, while USD $1,500 remains the key near-term pivot for a test toward USD $1,520.”

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