Gold prices are basically flat this morning as gold bugs begin their two day Fed watch. Market participants are anticipating the Federal Reserve to announce the start of its unwinding process to its monthly $85 billion bond buying program at the conclusion of the two day meeting.
The U.S. dollar went on a wild ride Sunday evening on the headlines from Sunday afternoon that Larry Summers has taken his name out of the running for Fed Chairman.
As we head into the weekend traders are focusing on the today’s economic reports and speculation on next week’s FMOC meeting results.
Late yesterday evening (9:30p.m.EDT) the Aussie dollar dropped like a rock on the headlines of disappointing Australia’s unemployment.
The Aussie dollar has climbed to level not seen since July 29 after better than expected Australian Business Confidence report. The Australian Business Confidence report jumped to 6 for the month of August compared to July’s -3 reading.
The safe haven Japanese yen took a hit last night after the Olympic committee selected Japan to host the 2020 Olympic Games.
The U.S. Bureau of Labor Statistics reported that the non-Farm Payroll grew by 169k jobs in August disappointing market expectations of 180k and downward revised NFP for July to 104k.
On this shorten first week of September this morning we find the GBP/USD reversing and erasing losses on the headlines of the Bank of England leaving monetary policy unchanged.