Daily market commentary: After a few weak sessions, the Dollar Index is almost flat


Bullion’s recovery has been stopped – for the time being – by the resistance placed at $1,750, as mentioned in the last few days’ commentaries. A solid bounce above this level could pull in more buyers but for the moment gold is still recovering momentum after the double bottom at $1,675, helped by the slowing down of the greenback. Zooming out, we can see that the first support level is placed at $1,725 for the spot price, followed by another support on the psychological threshold of $1,700 and of course by the double bottom placed at $1,675.

Carlo Alberto De Casa – Chief analyst, ActivTrades 


European markets were mixed on Wednesday’s open with Paris and Frankfurt the most resilient markets while Zurich, Warsaw and Copenhagen led declines as investors preferred to remain on the sidelines for the time being. The majority of benchmarks are trading with lower volumes than usual as investors have put any decisions on hold prior to today’s FOMC minutes release. The extremely dovish environment put in place last year by most central banks has significantly helped stock markets rise to record highs by boosting investments almost everywhere. However, with the recent worries about the potential for higher borrowing costs, most traders now fear the party may soon be over. Today’s FOMC minutes release will be crucial as it will provide investors with more hints about the short to mid-term monetary policy outlook. Meanwhile, energy related stocks may suffer increased volatility later this afternoon with the highly awaited US crude oil inventories data.

Pierre Veyret– Technical analyst, ActivTrades

Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

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