With the Economic Symposium beginning in Jackson Hole Wyoming tonight, all eyes have been focused on the US Dollar.
After raising rates for the first time in a decade in 2015, it’s all gone a little quiet at the Fed. Expectation has however started to pick up this week in anticipation of a hawkish delivery from Yellen in Wyoming. If this is in fact the case, then a Gold price at resistance might be the spot to look for a classic re-pricing as market expectations are forced to catch up with reality.
Taking a look at the XAU/USD chart, we can see that heading into the meeting, price is perched precariously at higher time frame resistance.
Just last week we had the Fed sending mixed messages to markets about whether a rate hike was back on the cards for 2016. Heck, maybe even as early as September!
While I’m not as confident as some market commentators, the fact that this is now being openly discussed by Fed members certainly is interesting. You know what they say about where there’s smoke…
Either way, just picturing the rejection off this major higher time frame resistance level has me salivating.
On the Calendar Thursday:
EUR German Ifo Business Climate
USD Core Durable Goods Orders m/m
USD Unemployment Claims
ALL Jackson Hole Symposium
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Dane Williams – @VantageFX
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