FOMC Fears Pushes Gold Up, ECB Pressuring Euro
During yesterday’s FOMC meeting concerns were aired regarding growth of inflation, raising suspicions that they may keep interest rates unchanged until the end of the year. Although most analysts assumed that the US was poised for a third interest rate hike in 2017. This fear seemed to resonate into the markets causing gold to recover previous losses trading in the area of 1289.86 (indicative price).
Another central bank that may cause a market reaction is the ECB – today’s 12.30 GMT minutes could cause a change in the direction of the EUR that managed to remain relatively unscathed even during the inability of Merkel to consolidate her “Jamaican” coalition in the Bundestag. It is currently at 1.18318 (indicative price).
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