Correlation between the European currency and gold | 20 10月 2022

20 10月 2022, EUR/USD

EURUSD trading plan:

Gold fell to the lowest in more than three weeks as Treasury yields and the dollar surged on expectations that the Federal Reserve will keep an aggressive pace of interest-rate hikes. The precious metal joined a selloff in equities and bonds as bearish sentiment took hold against a backdrop of high global inflation data. Gold traders were also on edge after Minneapolis Fed President Neel Kashkari’s remarks late Thursday that the US central bank can’t pause its tightening campaign once its benchmark rate hits 4.5% to 4.75% if “underlying” inflation is still accelerating. The Fed’s relentless monetary tightening to fight stubbornly high inflation led to a rally in the US dollar and higher bond yields. That has sent gold down about 20% from a March peak.

Investment idea: sell 0.9830 and take profit 0.9755.

David Johnson
Analyst of «FreshForex» company
您浏览器禁用cookie 文件. 在此情况下, 私人空间显示不正常. 如何启动cookie 文件的支持.
manager photo manager photo


Get bonus