Market Updates, week ahead

Trading Discussion News and Economy
1

Heads up for the week of September 7.

  1. The next FOMC decision lands September 16 at 2pm ET, and it is shaping up to be one of the more contested meetings in a while.
  2. Fed Chair Kevin Warsh’s comments on September 2 pushed the market’s pricing toward roughly a 70 percent chance of a hike, and then Friday’s blowout jobs report, 162,000 versus an expected 55,000, added more weight to that case.
  3. Dollar pairs are the obvious place to watch this play out. EUR/USD opened the week at 1.1613 and USD/JPY at 155.98.
  4. Gold has already reacted to the shift, dropping to about 4,325 dollars an ounce on September 2 on rate hike pricing alone, so expect more volatility there specifically as we get closer to the sixteenth.
    Plan your risk around that date rather than being surprised by it.
2

Gold could remain volatile as markets adjust their expectations ahead of the Fed decision. I’m watching whether it holds key support levels before making my next move.