In this article, we have covered the highlights of global market news about the USD, XPT/USD, Natural Gas and XAU/USD.
US Dollar Index seems to be given around 107.00 before FOMC.
With the FOMC event scheduled for later in the NA session, the index is presently giving up some of its significant gains from Tuesday and is trading in the area of 107.00.
The Fed is now expected to increase the Fed Funds Target Range by 75 basis points to 2.25 percent -2.50 percent, but investors will carefully watch Chief Powell’s press conference in order to learn more about the Fed’s plans for future rate hikes.
The index saw negative pressure after reaching almost 20-year highs north of the 109.00 level in mid-July, but for the time being it seems to have found some solid support around 106.00.
The Fed’s divergence from most of its G10 counterparts, particularly the ECB, together with brief geopolitical upheavals and the return of investor risk aversion have kept the dollar supported so far.
Platinum price analysis: $870 is the key as XPT/USD struggles within the bear flag.
The price of platinum (XPT/USD) is under pressure and has recently been hovering around $876.00 during Wednesday’s first European session.
In doing so, the precious metal maintains its bearish flag pattern and the negative bias from the previous day.
However, the $870.00 is highlighted as the critical level for XPT/USD bears entry due to a convergence of the 21-DMA with the bottom line of the mentioned flag.
Although the bullish MACD indications are against the pair’s sellers, the recovery still requires confirmation from the monthly resistance line, which is approaching $890.00 as of the time of the press.
The flag’s upper line and the 50-DMA, which are located, respectively, at $916.00 and $918.00 in that order, may provide a threat to the bulls even if the platinum price rose over $890.00. The $900 threshold also serves as an upside barrier.
Futures on Natural Gas: Potential for more reversal.
Tuesday saw new highs for natural gas prices in the $9.75 per MMBtu range, which had previously been reached in July 2008. However, later in the day, some of the gain was partially reversed. The move, which came about as a result of rising open interest and volume, leaves room for further corrective action in the very near future. Meanwhile, the crucial $10.00 per MMBtu level is the next upward target.
According to CME Group’s advanced data for the natural gas futures markets, open interest rose on Tuesday for the third consecutive session, rising to around 6.1K contracts. Following three consecutive daily losses, volume increased quickly by approximately 134K contracts in a similar fashion.
Gold price forecast: Fed Chair Powell and $1,730 must support the XAU/USD rise.
The price of gold (XAU/USD) rises from its intraday low on Wednesday’s slow morning in Europe as traders consolidate recent losses. However, cautious optimism and a decline in the value of the USD accompany the rise in prices for the yellow metal to $1,719 ahead of the US Federal Reserve’s (Fed) monetary policy meeting.
However, the US Dollar Index (DXY) suffers its worst daily loss in 12 days; as of press time, it was down 0.30 percent intraday at 106.90. This is because risk appetite has increased as a result of discussions about US-China relations and the European energy crisis.
The US 10-year Treasury rates jump 2.0 basis points (bps) to 2.80 percent at the latest, while the S&P 500 Futures increase 0.85 percent intraday.
The market’s recent risk-on attitude seems to have been helped by the lack of pre-Fed risk-aversion, higher US stock futures, and cautious optimism over the US President’s preparedness for a virtual meeting with his Chinese counterpart Xi Jinping.
Although the 50-SMA limits the gold price’s immediate fall to around $1,713, bearish MACD signals and the 100-SMA provide a challenge to XAU/USD purchasers until they overcome the $1,727 barrier.
However, before handing the metal purchasers control, the 50% and 61.8 percent Fibonacci retracements of July 04–21 fall, or $1,748 and $1,764 in that sequence.
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