The dollar and the dollar index managed to slow-down on its recent bullish price today after news that impacted the relatively strong currency. The pound also managed to stay ahead of the dollar today, while the gold prices manage to recuperate after several sessions of beatings.
On the other news, analysts are also pointing that the dollar can imminently surge just before the year-end on the hawkish view from the Federal Reserve. We can see another massive move and volatility on the currency’s prices as another Fed meeting is expected to commence this week, and the monetary policy is expected to take the center stage.
Dollar vs. Gold
After several sessions of a bullish dollar, the gold price manages to ease today as the Fed’s next meeting approaches. The spot gold managed to tally incremental increase at $1,276. 32 per ounce, this is a sigh of relief as the commodity sheds a massive 0.2% for the whole duration of October due to a bullish dollar on the hawkish Fed outlook.
The U.S. gold futures were also up today, the December deliveries were up at the $1,277.30. On the other hand, the dollar index, which was bullish since October started, was down by a massive 0.4% today at 94.76.
Dollar’s Slump Today
The price drop today revolves around the anticipated Fed meeting and the monetary policy; the Trump debacle is also taking a toll on the greenback. Trump is also expected to pick another Federal Reserve Governor, and speculations are pointing that Jerome Powell would be spearheading the central bank.
On the brighter side, the U.S consumer spending was upbeat, reports unveil the second largest increase form over 8 years last September. The increase is remarkable despite having two hurricanes in the past months; the inflation remained unmoved.
Pound vs. Dollar
The pound managed to overtake the dollar today, all-in-all, the GBP/USD was up by 0.3%. The optimistic pound prices were brought by the continued expectations of the next UK interest rate hike which is expected to hit in the second of November.
On the bleaker side, the interest hike continues to be saving grace in the UK; the November budget remains a looming concern as Chancellor Phillip Hammond’s choices remained slim and limited. According to IFS Deputy Director Carl Emmerson, Does he allow higher borrowing to persist, does he add to that with more spending, or does he try to offset that with greater taxes?”
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