The Australian Dollar gained when the US Fed struck a dovish tone last week. But markets soon realized that what applies to the Fed probably goes double for the RBA.
Another week consisting of point, counterpoint, noise and rumors ends up with no-one any the wiser as to how and when Brexit will end. And yet Sterling continues to battle to keep its head above water.
Developments coming out of the U.S. may continue to drag on the dollar as ‘data arriving since September suggest that growth is slowing somewhat more than expected.’
Gold prices rose as a dovish Fed sent bond yields lower and fears of a recession subsequently increased. Near-term XAU/USD outlook neutral, precious metal eyeing US GDP and core PCE inflation.
The Euro may face further selling pressure as incoming data flow and downbeat ECB commentary weigh on policy expectations. Another Brexit vote threatens volatility.
The Dow Jones will cope with a dovish Fed and lower growth forecasts while European equity markets look to avoid a “no-deal” Brexit.
See what live coverage is scheduled to cover key event risk for the FX and capital markets on the DailyFX Webinar Calendar.
See how retail traders are positioning in the majors using the IG Client Sentiment readings on the sentiment page.