Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
FED Disappointed Markets
Information is not investment advice
Midday Market View
Europe’s auto stocks were on the skids again on Thursday after fresh data showed that the recovery in sales had gone into reverse in August. U.S. stocks are set to open sharply lower Thursday, with investors disappointed that the Federal Reserve decided against adding more stimulus to advance its goal of spurring inflation. Congress continues to struggle to reach a deal on a new coronavirus aid bill although President Donald Trump has injected some life into talks and thus some investors had hoped the Fed would carry out more of the heavy lifting by injecting more monetary stimulus. Oil prices fell Thursday, rebalancing after recent strong gains as producers in the Gulf of Mexico took steps to resume output in the wake of Hurricane Sally.
Midday Key Point
- Eurozone August Final CPI comes at -0.2% vs -0.2% y/y than expected
- EUR/GBP finds support ahead of BoE
- EUR/USD finding support at daily trendline
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
The US dollar index has all chances of reaching the 2000s high of 120.00.
Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?