SMM: Wednesday (Dec. 11) Asian market early trading, the euro / dollar hovered around 1.1090, spot gold basically stable, located near $1464 / oz. Economies.com, a well-known financial information website, wrote an analysis of the future trend of gold and euro / dollar.
The Fed's decision was the biggest concern for investors this trading day. After cutting interest rates three times in a row, the Fed is expected to stand still at its last meeting in 2019.
At 03: 00 Beijing time on Thursday, the Federal Open Market Committee (FOMC) will announce its interest rate decision and statement, followed by a news conference by Federal Reserve Chairman Colin Powell at 03: 30.
The FOMC announced at its October meeting that it would cut the target range of the federal funds rate by 25 basis points to 1.5 to 1.75 per cent. At that time, the FOMC declared its position to be "hawkish" after the meeting. The statement deleted the phrase "appropriate action will be taken to sustain economic expansion". The adjustment has been widely interpreted by the market as a temporary end to the rate cut and the Fed will enter a period of monetary policy observation.
Powell said at a subsequent news conference that the FOMC expects the outlook for moderate economic growth to be close to 2 percent. As long as the economy meets expectations, policy is appropriate.
On November 25, local time, Federal Reserve Chairman Powell said at the annual meeting of the Providence Chamber of Commerce that the current monetary policy is appropriate given that the economy is still on track.
The recent U. S. non-farm payrolls report supports Federal Reserve Chairman Paul Bowie in maintaining a positive attitude at the news conference. The data showed that 266000 jobs were added in November, the biggest increase since January, and the unemployment rate was the lowest 3.5 per cent since 1969.
Analysts pointed out that if Powell hawkish, the dollar is expected to be boosted, gold prices could be hit.
On the gold side, Economies.com points out that, judging from the four-hour chart, gold tested the EMA 50 index and remains below that level.
The article shows that it is worth noting that random indicators began to gradually lose positive momentum, waiting for this factor to promote gold prices to resume bearish tendencies, and fell below the small bullish channel support line, if so, gold prices may fall to the bearish target, first at $1447.00 / oz.
Once gold falls below $1447.00 an ounce, the next target for gold will be $1413.10, Economies.com said.
Economies.com said that keeping gold below $1467.00 an ounce was the first condition for gold to remain bearish on expectations.
On the euro / dollar side, Economies.com wrote in the article, the euro / dollar rose again and moved away from the 1.1065 level. The exchange rate may test 1.1108 and then fall.
Unless the euro / dollar breaks above 1.1108 and remains above that level, it will continue to predict that the exchange rate will be bearish, the Economies.com said.
