Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.
GOLD
In the last few trading sessions we have seen less volatility on gold. The bullion price remains above $1,950, without being able to attack the key resistance area of $2,000. The positive trend looks to be recovering its strength even if we are in a “wait and see” phase, with investors believing that the markets are priced correctly in the current situation and fresh markets movers will be needed in order to help bullion to find a new directionality.
Related Articles
Meanwhile, the correlation with the EUR/USD is still significant, with yesterday’s recovery attempt stopped by greenback rallying. Technically, the price remains in the lateral trading range between $1,960 and $2,070 in a situation unchanged for a few weeks.
Carlo Alberto De Casa – Chief analyst, ActivTrades
EUROPEAN SHARES
Stocks traded slightly higher in Europe on Wednesday as investors brace for today’s Crucial Fomc Meeting. Even if stock markets have registered a strong and sharp recovery since March, helped by an unprecedented monetary and fiscal response, the momentum now seems to be fading as bearish drivers are starting to outweigh the bullish ones in investors’ minds. Renewed concerns about a second wave of the pandemic combined with difficult Brexit talks and simmering US-Sino tensions are among the black clouds darkening the markets’ sky at the moment.
All eyes will be on the Fed’s policy meeting today with bull investors desperately needing further impetus from Jerome Powell to continue the current rally and register new highs on stocks.
While the FOMC is widely expected to maintain its dovish tone today, the question of how big the new potential stimulus measures will be is in everybody’s mind. Again just like with the ECB a few days ago, sharp downside price action on stocks is likely to take place if the Fed disappoints today.
Pierre Veyret– Technical analyst, ActivTrades
The post Daily market commentary: Crucial FOMC meeting today appeared first on LeapRate.