Thursday, 14 September 2017

American dollar - the situation is uncertain

Posted by Valentine at 17:44 Labels:

Yesterday, the US dollar showed a significant gain across the entire spectrum of the market. The strengthening of the US currency was caused by reports about Donald Trump’s administration being ready to submit the draft of the tax reform next week. In particular, it is planned that the corporate profit tax will be reduced to 15%.

Despite yesterday and today's reports on inflation, which increased the probability of interest rate, the US dollar almost did not react to these data. Apparently, market participants found these data not important enough, especially amid news on expected tax reform program.

We see that overall market situation is a kind uncertain and we wait for today's closure to decide on the future intents of the market.

Gold sale-off among the day: a turn or correction?

Yesterday, trading in gold continued in a negative light. The new information that the administration of the White House could submit a program of tax reforms next week gave a massive support for US dollar. In turn, this exerted pressure on precious metal, which updated local minimum.

Today the volatility of gold is overshooting. Bulls were able to defend the level of $1321 and even lead the market to the area of ​​$1325, nevertheless the growth looks very fragile. The situation in the whole market is not defined and gold is in spotlight of the entire market. We tend to wait for the closing of the day or even this week to make any conclusion.

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