Trading recommendations and Technical Analysis – HERE!
The closer the FOMC meeting on December 15-16, the stronger is growing confidence among market participants in raising interest rates on it in the US.
After the release of strong data NFP in the U.S. for October at the beginning of the month, all subsequent data coming from the USA, was mostly positive and indicated a steady recovery of the U.S. economy. Except for the local growth of the price of precious metals and other safe-haven assets against unforeseen news data political and economic nature, the dollar has strengthened significantly since the beginning of the month in pairs with precious metals.
Published since the beginning of the week in generally positive economic data from the US, has strengthened market participants ' view on raising interest rates in the US in December.
Revised GDP data for the 3rd quarter pointed to growth in annual terms at 2.1% (vs. 2.0% and 1.5% in the previous period). Increased orders for durable goods in October (of 3.0% vs. 1.5% and -0,8% in the previous month), increased the price index of personal consumption expenditure in the 3rd quarter, and also decreased the number of applications for unemployment benefits in the last week of November. Despite low inflation (below the target level of 2.0%) and fluctuations of some members of the FOMC, as reflected in the minutes from the last FOMC meeting, the fed may begin to expect market participants to increase interest rates in the US.
At the end of trading on COMEX Tuesday, the price of December futures for silver fell 1.3 cents.
Interest rate futures indicate the fed 78% chance of raising interest rates in December. WSJ dollar index rose 0.1% to a 13-year high.
The improvement cycle may involve a gradual tightening of monetary policy in the United States. This will increase the attractiveness of dollar from investors about precious metals, because the cost of borrowing to buy and store precious metals will grow.
See also review and trading recommendations for USD/CAD!
