The US Federal Reserve gave no surprises in its monetary policy meeting. Powell statement mentioned unemployment is likely to be at 7.6% at years end as opposed to 9.3% as previously forecast. GDP will contract form 6.5% to 2.8% and monetary policy will remain as they are for now but hinted they will adjust if needed. The dollar strengthened significantly but no clear signs of a a developing trend. It looks strong again the the Euro but it’s still looking bearish against the Japanese Yen after breaking support at 105.00.
Gold couldn’t hold yesterday gains with the Fed announcement falling to 1,955 at the end of day. Not being able to hold above 1,975 could see confidence in the yellow metal drop and it’s chances to hit the golden 2,000 mark melt away in the short term.
All eye set on on Aussie employment figures for the month of August. With Melbourne in lock-down due to the countries biggest COVID outbreak, the data is expected to be discouraging. However the positive vaccine talks coming from the UK with the continuation of the trials means that the vaccines which will be distributed to Australia remain on track and hopes for a recovery are optimistic.
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