USD: Would Jerome Powell (Fed) Spill The Tea About On The Interest Rate Decision?

Oil seesaws, gold edges higher

Oil

Crude prices initially edged higher as we get further reports that OPEC+ is seriously considering lowering production and after the latest round of US economic data and Fed speak suggests the economy is still in a good position to handle more rate increases. Oil will start to form a key trading range until Fed Chair Powell’s speech at Jackson Hole. We could get a major move in the dollar post-Powell and that could trigger a major one-way move for commodities. ​ The oil fundamentals still support crude prices to make a move above the $100 a barrel level, but first, we will have to wait-and-see if the dollar cooperates.

Oil is seesawing ahead of Jackson Hole and that will probably continue until we hear from Fed Chair Powell. ​

Gold

Gold got a limited boost as the dollar softened ahead of Fed Chair Powell’s speech at Jackson Hole. ​ Another round of US economic data and Fed speak supported the idea that the Fed will remain aggressive tightening policy until inflation is under control. ​ Investors want to see if Fed Chair Powell locks the Fed in for another massive 75 basis point rate increase in September, but he will likely stick to the data-dependency script and leave it up to the September 13th inflation report.

Gold will likely consolidate between the $1750 to $1780 zone leading up to Fed Chair Powell’s speech.

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Oil seesaws, gold edges higher - MarketPulseMarketPulse

Oil seesaws, gold edges higher

Ed Moya

With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.