US treasury bond surprise drives Gold and EUR/USD higher. Crude Oil elevated [Video]

Brad Alexander FX Large Limited

Yesterday, the US Treasury announced that it will be doubling its purchasing of longer-term bonds.

That’s 4 billion dollars worth from September to November.

This drove USD even weaker.

In today’s Market Outlook, let’s take a look at Forex trading on WTI Crude Oil, Walmart, AUDUSD, USDJPY, Gold, XAUUSD, Silver, XAGUSD, and EURUSD.

In an attempt to convince investors and other central banks that bond yields aren’t getting out of control and to stop dumping US bonds, the US Treasury took action.

That, in turn, drove USD weaker, with the trend, and you will see this on every chart.

This affected gold as well.

If you saw our last video, we pointed out that analysts were looking at $4,500, and here we are.

Silver was dipping even lower, out of step with gold, and XAGUSD has also risen.

This has also helped with the economic issues with Japan, so maybe Scott Bessent won’t have to spend another $4 billion buying JPY.

Yesterday, we spotted this reversal of price at the lower trend line of AUDUSD, and the US Treasury announcement really helped with the bull run.

So, how did all this affect the stock markets?

We can see that the S&P 500 rallied, and this is normal when bond yields fall, but it seems that the bear run will continue.

Getting back to the AUD, the big move upward on AUDUSD shows just how influential USD is as yesterday’s Australian employment data was very bad, with a big miss to the downside.

As we can see in AUDNZD and AUDCHF, we will be looking for retracements on AUD pairs.

If we look at the daily chart on AUDCHF, we see that the news may be giving us our News Catalyst Fade, so we will be watching for a reversal.

And, if you are interested in trading equities, you may want to look at buying the dip on Walmart as their earnings report happens today.

And, we have a complete standstill in Iran with no peace talks going on, and Crude Oil prices are elevated and consolidating.

All we can say here is to watch the news.

That’s all for now.

CFDs and FX are leveraged products, and your capital may be at risk.

Author

Brad Alexander

FX Large Limited

Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.

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