Gold prices rose 1.5 percent on Wednesday after the Federal Reserve kept the margin at its policy meeting. The bank continued to maintain the course of interest rates, maintaining levels of 0.25% in a vote 9-1. The Fed statement was optimistic, saying that risks to the economy have receded and the labor market are shrinking. The Fed added that it continues to monitor the levels of inflation and said the housing sector had improved. The Fed will make a move and raise rates in September? It seems that the Fed could go either way, and politicians will make a decision at the meeting of September according to the strength of the US data. This means that the numbers of key US, as the advance GDP report on Friday, will be under the microscope market and unexpected readings could lead to a sharp volatility in currency markets.
We could see some volatility further gold after the policy meeting the Bank of Japan on Thursday. The Bank of Japan has been under strong pressure to adopt further easing measures, but does it have any monetary ammunition left? Interest rates are already at zero, and the economy continues to struggle with deflation. Other options available for the bank include the amount or extending flexible quality. The Bank of Japan will issue a policy statement at the conclusion of the meeting, and it is unclear whether the bank will take additional easing measures. If the bank does make a move, we could see gold prices move higher.
/ USD XAU Basics
Thursday (July 28)
8:30 jobless claims US. 261K estimate. 266K Real
10:30 US Natural Gas Storage. Estimation 29B. Real 17B
Upcoming key events
Friday (July 29)
8:30 Advance US GDP. Estimate 2.6%
10:00 US revised Consumer Sentiment UM. 90.2 estimate
* Key Announcements are highlighted in bold
* All times are EDT release
XAU / USD for Thursday July 28, 2016
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