EURUSD Weekly Outlook: 19th October 2020 EURUSD rose in the European market on Monday against…
Gold prices fall before the decisions of the Federal Reserve
Gold prices fell during trading today in the European market, approaching towards recording its second daily loss in a row, but the loss is still limited due to the weak performance of the US dollar against most global currencies, at a time when investors refrain from building any new purchasing positions, in anticipation of the release of important economic data. In the United States on the jobs of the private sector and the service sector, in addition to the issuance of the decisions of the Federal Reserve Board at the conclusion of its regular monetary policy meeting.
Gold prices continue to decline
Gold fell during spot transactions by more than 0.5% until 09:50 GMT, to trade around the level of 1778.25 US dollars per ounce, from the opening level of today’s session at 1787.82 dollars, and reached its highest price at 1788.18 dollars per ounce.
At the conclusion of yesterday’s trading, the precious metal “gold” lost 0.3% in the second daily loss during the last three sessions, as prices were recently affected by the rise of the US dollar against most currencies.
In terms of the US dollar index trading, the index fell today, Wednesday, by about 0.1%, heading towards recording the second daily loss in the last three sessions, reflecting the renewed selling of the US currency against most major and minor currencies, which currently contributes to providing some support for gold prices as it is priced. dollar and there is an inverse relationship between them.
The current losses in the levels of the US currency come in light of the investors’ reluctance to build any new purchasing positions in the dollar, in anticipation of the release of many important economic data in the United States, in addition to the decisions of the Federal Reserve.
Expected economic data
It is scheduled at 12:15 GMT to release the ADP reading to measure new jobs in the private sector in the United States. Expectations indicated that 0.4 million new jobs were added during the previous month of October, compared to the addition of 568 thousand jobs last September.
Also, by 14:00 GMT, the Institute for Services Supply Index was released, and a level of 61.9 points is expected for the month of October, with the same previous reading.
Monetary policy meeting
The Federal Reserve will conclude its regular meeting, extending from yesterday, later today, to discuss the appropriate monetary policies for the developments in the growth of the US economy, “the largest economy in the world”, amid the full potential for interest rates to remain unchanged to remain at the 0.25% range.
The interest rate decision and monetary policy statement will be issued by 18:00 GMT, followed by a half-hour press conference by Chairman Jerome Powell.
Economic expectations widely indicate that the announcement of the official start of reducing the $120 billion bond purchase program will be announced, in a key step that comes before proceeding with the implementation of the interest rate increase plan.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.