GOLD, US DOLLAR, NASDAQ – MARKETS REACT TO SEPTEMBER 2020 FED MEETING
- FOMC preference leaves a aim sovereign supports rate on reason nearby 0 as expected
- Fed officials upgraded mercantile projections for GDP, stagnation and inflation
- Nasdaq edges aloft while a US Dollar and gold price movement whipsaw in response
The Federal Reserve only expelled a latest financial process matter where a executive bank reiterated a dovish position. The Sep 2020 FOMC Statement settled that a benchmark sovereign supports rate was left unvaried during 0.00-0.25% as expected. The Fed proclamation also suggested vigilant to continue purchasing Treasury bonds and group mortgage-backed bonds during slightest during a stream pace. Interestingly, dual Fed officials dissented from a latest FOMC preference as they opt for larger coherence on process going forward.
FOMC SUMMARY OF ECONOMIC PROJECTIONS – SEPTEMBER 2020
Chart Source: Federal Reserve
The Sep Fed proclamation also enclosed updated quarterly mercantile projections. The Federal Reserve upgraded scarcely all of a pivotal mercantile variables tracked – like genuine GDP, unemployment, and acceleration – compared to Jun forecasts.
US DOLLAR INDEX PRICE CHART: 5-MINUTE TIME FRAME (16 SEP 2020 INTRADAY)
The US Dollar reacted negatively immediately after a Sep FOMC matter crossed marketplace wires. USD cost movement has given whipsawed behind aloft to trade about prosaic intraday, however, and could be due to comparatively improved US mercantile outlook.
GOLD PRICE CHART: 5-MINUTE TIME FRAME (16 SEP 2020 INTRADAY)
Gold cost movement is mirroring a instruction of a US Dollar. The changed steel extended aloft right after a FOMC matter was released, though has given forsaken behind toward event lows. Gold could stay comparatively supported, however, with a Federal Reserve looking expected to let acceleration tolerably mistake a 2% normal objective.
NASDAQ PRICE CHART: 5-MINUTE TIME FRAME (15 SEP TO 16 SEP 2020)
As for vital batch indices, a Nasdaq is pulling aloft as financier risk ardour stays protection with a Fed reiterating a ‘lower for longer’ position and vigilant on gripping a copy press greased up. After a digesting a evident greeting to a Sep 2020 FOMC matter and updated mercantile projections, traders now change concentration to a follow-up press discussion led by Fed Chair Jerome Powell scheduled for 18:30 GMT.
Keep Reading – US Dollar Price Forecast: USD Descending Triangle for FOMC
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