The FOMC July 31st Minutes were released earlier today and the collective market seems to think the minutes are less dovish than expected!

Let’s take a look at gold, both before and after the release:

BEFORE:

Source:  Tradingview, FOREX.com

AFTER:

 

Source: Tradingview, FOREX.com

 

Gold was volatile right before the release, however the immediate decline in gold after the release from 1507.25 to 1500.00 would suggest that the market thought the minutes were less dovish.  There is no need to own gold, as funds can be utilized elsewhere.

Let’s do the same for 30-year yields, again both before and after the minutes release:

BEFORE:

 

Source: Tradingview, FOREX.com

 

AFTER:

 

Source: Tradingview, FFOREX.COM

 

Bond yields were coming off into the release and put in a low near 2.02, as the RSI was in short-term oversold conditions.  The immediate bounce to 2.07 in yields after the release also would suggest that the market thought the minutes were less dovish.  Bonds were sold, and yields moved higher. 

But when you get right down to it, does it matter what was in the minutes?  The meeting was three weeks ago!  All eyes will be on Fed Chair Powell on Friday as he speaks at the Jackson Hole Symposium and gives his CURRENT view of the economy!

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD turns below 1.10 as market mood eases

EUR/USD has dropped below 1.10 as the market mood improves. Earlier, it hit three-week highs as the stock market crash and rush into bonds is raising the chances of the US Fed cutting rates. Further coronavirus headlines are awaited.

EUR/USD News

GBP/USD hits new 2020 low amid Brexit rhetoric, coronavirus headlines

GBP/USD has dipped below 1.2850, hitting a new 2020 low as concerns about a no-trade-deal Brexit are weighing on the pound. Coronavirus-linked USD weakness is minimal in this pair.

GBP/USD News

XAU/USD tumbles near two-week’s lows, sub-$1600/oz

Gold has been dropping sharply this Friday while reaching the 200 SMA on the four-hour chart. XAU/USD bulls gave up as sellers took the market down sharply. The bears seem to be in charge and more down could potentially be expected. 

Gold News

WTI remains under pressure around $45.00

Nothing new around crude oil prices, with rising concerns on the Chinese COVID-19 and its potential impact on the economy and the demand for the commodity keeping traders’ sentiment well depressed.

Oil News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors

Cryptocurrencies

Signatures