2nd November 2020 - The bullish market sentiment is weighing down on Gold
The gold is still depressed after falling of further Fed's stimulus odds raised the demand for the greenback, despite the current risk-on sentiment which drove US major equities indexes higher.
After more market participants have found yesterday no need to hold Gold further, following the flash release of US Nov Manufacturing PMI which rose to 56.7, while the consensus was referring to setting back to 53 from 53.4 in October.
the preliminary release of US Nov Services PMI rose to 57.7, while the median market forecast was pointing to retreating to 55.3 from 56.9 in October.
UST 10yr yield could gain 0.015% rising to 0.87% following these data which dampened the prospects of watching a nearby easing action by the Fed which kept on the 5th of this month its fund rate unchanged within 0-0.25% range.
Following the FOMC's decision, Jerome Powell, the Fed Chairman said that meeting was to analyze the Fed's asset purchases program influences and to study a possible shift to longer duration, wider size of holding composition of asset purchases, if needed.
He indicated also that the fiscal response was very good, it is still absolutely essential here. he said also that there is still a need for healthcare policy amid rising concerns about COVID-19 more widespread may cause pull back in the labor market.
The US Equities indexes future rates could have another boost by the General Service Administration acknowledge of Biden as the apparent winner of the presidential election which has been followed by Trump's announcement to initiate the protocol of the authority transition to Joe Biden.
The US equities have already been boosted by the positive vaccine news and the former Fed Chairwoman Janet Yellen's approach to be the next US Treasury secretary. While the markets are looking forward for stronger reflation plan to come stimulate the economy, After the bipartisan failed to reach spending bill deal during the last 3 months, As The Democrats were aiming for $2.2 trillion package and the republicans accepted only $1.6 trillion.
The lower political risks drove Nasdaq 100 future rate again above 11950, the oil prices could creep up to find WTI now trading above $43 per barrel sparked by the current bullish market sentiment.
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din
The gold is still depressed after falling of further Fed's stimulus odds raised the demand for the greenback, despite the current risk-on sentiment which drove US major equities indexes higher.
After more market participants have found yesterday no need to hold Gold further, following the flash release of US Nov Manufacturing PMI which rose to 56.7, while the consensus was referring to setting back to 53 from 53.4 in October.
the preliminary release of US Nov Services PMI rose to 57.7, while the median market forecast was pointing to retreating to 55.3 from 56.9 in October.
UST 10yr yield could gain 0.015% rising to 0.87% following these data which dampened the prospects of watching a nearby easing action by the Fed which kept on the 5th of this month its fund rate unchanged within 0-0.25% range.
Following the FOMC's decision, Jerome Powell, the Fed Chairman said that meeting was to analyze the Fed's asset purchases program influences and to study a possible shift to longer duration, wider size of holding composition of asset purchases, if needed.
He indicated also that the fiscal response was very good, it is still absolutely essential here. he said also that there is still a need for healthcare policy amid rising concerns about COVID-19 more widespread may cause pull back in the labor market.
The US Equities indexes future rates could have another boost by the General Service Administration acknowledge of Biden as the apparent winner of the presidential election which has been followed by Trump's announcement to initiate the protocol of the authority transition to Joe Biden.
The US equities have already been boosted by the positive vaccine news and the former Fed Chairwoman Janet Yellen's approach to be the next US Treasury secretary. While the markets are looking forward for stronger reflation plan to come stimulate the economy, After the bipartisan failed to reach spending bill deal during the last 3 months, As The Democrats were aiming for $2.2 trillion package and the republicans accepted only $1.6 trillion.
The lower political risks drove Nasdaq 100 future rate again above 11950, the oil prices could creep up to find WTI now trading above $43 per barrel sparked by the current bullish market sentiment.
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din