Forex Marketz Daily Forex News – Fully Markets Update
Gold future contracts continue to be firm thanks to an ever weakening U.S. dollar. The bullion is trading near a four month high and the almighty buck is near a three year low.
As of 1 am GMT, spot gold (XAU/USD) was trading flat at $1,340.63 per ounce. U.S. gold futures, for February, were up 0.3 percent at $1,340.20 per ounce.
Asian stock markets were near record highs thanks to strong corporate earnings. Investors are also optimistic with global economic growth. There are some nervousness with rising trade tensions.
The U.S. dollar index was down as the almighty buck extended its weakness against a basket of six major Forex majors. The dollar has hit a fresh three year low. This occurred on Tuesday. The euro surged on consumer confidence data which could mean that there is strong momentum in the region’s economy.
Gold Traders Look at Global Headlines
Looking at headlines out of the Unites States, the U.S. Senate has confirmed Federal Reserve Governor Jerome Powell to be the next head of the Federal Reserve Bank. He will be succeeding Janet Yellen. He is more than likely to provide continuity in U.S. monetary policy. The American economy has been expanding nine years in a row.
The Bank of Japan kept monetary policy unchanged as expected. Its chief cooled off market speculation that the BOJ will move away from ultra-easy monetary policy. Japanese inflation is still well below the central bank’s target.
U.S. Treasury debt yields fell further on Tuesday. There was low volume and they moved in tandem with Japanese government bond yields (JGB). This comes after the Bank of Japan kept interest rate targets unchanged. As mentioned above the bank also poured cold water on any investor speculation that the central bank will shy away from an easy monetary policy.
