USD bulls attempt a quick recovery of losses

The USD bulls were quick to recover any losses encountered following the comment provided from the FOMC Minutes that it will be in no hurry to begin raising US interest rates, with the USD driving higher against both the major currencies and metals yesterday. The reason for the reduced USD softness was noted in yesterday’s market report, where it was mentioned that USD weakness was not expected to become a longer-term trend because the “no hurry” indications just ended continuous speculation that the Federal Reserve will not be raising US interest rates in the next few months.

As reiterated on a high variety of occasions, the Federal Reserve were not in a hurry to conclude QE and it was never going to be in a hurry for begin raising US interest rates either. For one reason or another, the continued progress the US employment sector has made has consequently led to ambitious optimism that the FOMC might have been inclined to raise interest rates as early as March 2015. This was extremely ambitious and it has been ambitious to expect this to happen since the end of Summer 2014 to be honest.

The strengthening USD was the main contributor behind Gold slipping from $1222.to $1205 and the metal looks like it is commencing Friday under some bearish pressure. There was also a pullback in Silver with metal declining from $16.78 to $16.33. What happens today? There is a very low volume of economic data released from the United States and this might provide some opportunity for metals to bounce slightly. It should also not be ruled out that if the emergency Eurozone Finance Ministers meeting goes pear shaped, that traders might be inspired to look for safe-havens.

Written by Jameel Ahmad, Chief Market Analyst at FXTM.

For more information please visit: Forex Time

Disclaimer: The content in this article comprises personal opinions and ideas and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime Ltd, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Risk Warning: There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose, it is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. If the risks involved seem unclear to you, please seek independent financial advice

FXTM is an international forex broker which provides access to the global currency market and offers trading in forex, precious metals, Share CFDs, ETF CFDs and CFDs on Commodity Futures. Trading is available via the MT4 and MT5 platforms with spreads starting from just 0.5 on Standard trading accounts and from 0.1 on ECN trading accounts. Bespoke trading support and services are provided based on each client’s needs and ambitions – from novices, to experienced traders and institutional investors. ForexTime Limited is regulated by the Cyprus Securities and Exchange Commission (CySEC), with licence number 185/12 and FT Global Limited is regulated by the International Financial Services Commission (IFSC) with license numbers IFSC/60/345/TS/14 and IFSC/60/345/APM/14.

The post USD bulls attempt a quick recovery of losses appeared first on Forex Circles.

Source:: USD bulls attempt a quick recovery of losses