Gold 1693,50
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EURUSD 1,0799
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DJIA 24115
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OIL.WTI 25,095
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DAX 10609
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This amount of “infinite” money has warmed up the situation on risky assets so much that it is not yet clear how to control the situation. Perhaps it will be possible for the Fed, at a meeting on Wednesday which will clarify further policy.
USD/JPY
As we can see, markets are very enthusiastic about the economic recovery, but still many want to be reinsured. Just yesterday, we assumed that it was time for the markets to make a correction, as the correction began on Tuesday. In anticipation of the Fed meeting, investors are making some profit right now. After the meeting, traders will look for signals in the statement that the worst part of the crisis is over. It is also important to understand whether the Fed will intervene in trading to smooth out the yield in the markets or not. The DAX closed 1.7% lower and the S&P500 traded 0.5% lower of the opening price but still above 3000.
Euro
On Tuesday the whole European market was traded in different directions. Euro grew and reached the level of 1.1360, which it could not pass, several trading sessions back. A very strong resistance zone was formed from above at 1.14. Fluctuations in the European politics, as well as the Brexit standing in place, do not allow to formulate a clear direction. So far, an exit above 1.14 is unlikely, as the dollar still has a potential for strengthening.
JAPANESE YEN
Yen went on the offensive and it’s alarming. Of course, much will depend on the Fed’s rhetoric, how much their control and actions will affect financial revenues. The rally of safe haven currencies will continue from strict statements. USD/JPY traded at 107.70.
Gold
The same is true for gold now. The price is above $1700 per ounce and will also rise in case of serious claims by the US Federal Reserve. If the statement hears the notes that the economy no longer needs stimulus measures, we will see a massive profit taking in risky markets and an outflow of money into safe assets.
What’s waiting for us today?
12.00 OPEC meeting.
16.30 US crude oil reserves.
20.00 Statement by the US Federal Reserve
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