Daily market report
On the other side, the U.S. Dollar retreated for the first time this week against a basket of major currencies after benefiting from expectations of tighter monetary policy as the FED is due to deliver two more rate hikes later this year. In addition, the recent U.S. housing data came out above expectations which supported the U.S. Dollar’s recent advance.
Moreover, the technical picture of gold has not changed after failing several times to exceed the key resistance level located near $1960 an ounce. The yellow metal fell about $20 from yesterday’s high to reach a low of $1920 which represents major technical support for prices. Thus, traders must monitor this level as the break beneath it is likely to trigger another wave of decline that may target the 1907 level followed by 1900 in extension. On the other side, if this support continues to hold, the gold trend is expected to remain neutral in the coming days.
Looking at today’s important economic releases, traders’ attention will be turned to the Bank of England interest rate decision, which is expected to raise key interest rates by 25 basis points from 4.50% to 4.75%. In the United States, the monthly figures for existing home sales are expected to fall from 4.28 million down to 4.25 million, while oil traders will be watching closely crude oil inventories figures that may affect the short-term price action.
Finally, FED chair Jerome Powell is due to speak for the second day on the economic outlook and recent monetary policy actions in Washington DC.