U.S. FOMC Interest Rate Decision
The Count Down begins for the most awaited event for the day and that is U.S. FOMC Interest Rate Decision (1900 GMT) followed by Press Conference (1930 GMT). Traders will be very attentive during FOMC Press Conference to forecast the future direction of the U.S. dollar.
It’s the primary tool the FOMC uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes.
Most probably Fed will keep the interest rate unchanged but any surprise regarding new stimulus package will boost the U.S. dollar against major peers. Markets widely expect that the Fed could increase the Asset purchases and how the Fed Chair Powell conduct the Press Conference will also be watchful as the tone will be hawkish or dovish?
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold remains highly volatile in early U.S. session and slips below $1,850 mark. Today pair made intraday high at $1,865 and low at $1,849 mark. A sustained close above $1,870 requires for the upside rally. On the other side, consistent close below $1,853 will check key supports as well. Key support levels are seen around $1,847, $1,840, $1,832, $1,820, $1,812, $1,802, $1,787 and $1,776 mark respectively. Key resistances are seen at $1,865, $1,876, $1,882, $1,888, $1,894, $1,902, $1,913, $1,930 and $1,949 marks respectively.
Take a look and do trade wisely!