Monetary policy divergence driving FX, Gold a long-term buy - Hantec Markets [Video]
|The central bank policy expectations are the major catalyst for FX, says Richard Perry, Market Analyst at Hantec Markets, as he speaks on the Fed, dollar, EUR/USD, USD/JPY and Gold, in the Tip TV London Finance Show, joined by Paul Rodriguez, Director at Think Trading, and Zak Mir, Technical Analyst at Zak’s Traders Cafe.
Highlights:
“Touch disappointing for markets as we saw dollar coming-off. But this is knee jerk reaction and don’t think the USD could go down further.”
“A September rate hike is not going to happen as there are numerous reasons, election being the major one.”
“Dollar is likely to continue strengthening as Fed is the only central bank to hike rates.”
“EUR/USD – We are still in that move lower. Got a bit of knee jerk reaction yesterday, but ultimately its heading to 1.0911 (post Brexit low). The fact that the ECB will surely surely follow BOE, and thus spot could drop to 1.08 – long-term floor. 1.08 is a medium to longer term floor.”
“USD/JPY – BOJ tonight. The only thing that can send the pair higher is helicopter money…Technical bias remains to sell into strength.
“EUR/JPY short a better play if you see the broad based USD sell-off.”
“Gold – is a strong chart now. Perfect buying area around $1306-1325.”
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