Key focus for Tuesday is Yellen
US Dollar fate in Fed Chair's hands
Still love buying GOLD lower down
YELLEN SPEECH - Ok..so were back to looking at market following a nice long weekend. While currencies were trading on Friday and Monday, and while things got a little interesting Monday, in the end, nothing really happened. Right now, we have a US Dollar that has regained momentum in recent weeks, with a barrage of hawkish Fed comments fueling the gains. But all of this hawkish speak could be dismissed later today, if the Fed Chair doesn't sing a similar tune. Any signs of Yellen keeping more to the tone of the dovish March FOMC decision will likely open a more intensified sell off in the Buck. Certainly, yesterday's still subdued US PCE inflation readings haven't done anything to help the Buck. So right now, it all comes down to today's Yellen speech at the Economic Club of New York. There isn't anything else of meaning on today's calendar and we will have to see what the Fed Chair says.
BUYING GOLD - Of course, as you all well know, as traders, we could care less about what Yellen has to say and only that she has something to say that inspires a fresh round of volatility in the market. As I scan across markets into this new week, the only thing that jumps out at me right now is GOLD. The yellow metal has pulled back from recent highs and could be poised for deeper setbacks to test $1200 in the sessions ahead. This is what I am hoping for anyway, as the case for a long position down there is quite compelling on the technical and fundamental fronts. If you want to hear more about this, just look back to my commentary on the topic from last week. But if you just want to know about the trading, I really like buying GOLD at $1200. I believe the next big move is through $1300 and any setbacks should be very well supported above $1190 on a weekly close basis. Anyway, let's ease back into it all today and see how it all plays out. As always, if I see anything else, I will let you know.
This analysis is for informational and educational purposes only. This is not a recommendation to buy or sell anything. MarketPunks is not a financial advisor and this does not constitute investment advice. All of the information contained herein should be independently verified and confirmed. Please be aware of the risks involved with trading in currencies, stocks, commodities, cryptocurrencies and sports. Do not trade with money you cannot afford to lose. It is recommended that you consult a qualified financial advisor before making any investment decisions.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.