Increased volatility surged as the FOMC statements outweighed mixed reports from the economic sectors. As most traders were made aware that the Federal Reserve would slowdown or even stop purchasing bonds sooner than expected. This statement was the main catalyst as investors uncertainty prevailed in the market place prompting a slide in the US stock market. And the USD to rally which has influenced the Gold prices to mark a decline touching the all important support price @1555.07 levels.
With that said, the USDx topped the 81.10 basis point and have shown a good deal of sustainable strength at these levels which we have anticipated would occur between the Wednesday through Thursday trading sessions. Momentum build-up emerged alongside with the volumes to push the US Dollar higher have made many market participants cover short USD positions. Daily trading sessions pullbacks are again expected until a considerable follow-through towards the end of this week's trading takes place. USD strength have shown it true colors! And now choosing the best currency pair to pursue the USD directional movement would be determined by way of tracking open interest and trader volumes during position adjustment.
Please continue...
No comments:
Post a Comment