Finally, the much-awaited FOMC meeting was held yesterday where the decision came out to be totally opposite of what most of the economists and investors were expecting.
The Federal Reserve not to taper the stimulus plan as they see that the economy has certain areas that need to be improved and cannot be left out just when they are about to give a good outcome to the U.S economy.
The euro gained massively against the U.S. dollar where it soared around 190 points on this decision and is currently trading at the 1.3527 level, where a move above 1.3533 could lift the pair further up to 1.3593. However, a bearish correction is due for the pair where a move below the 1.3466 pivot point can drag the pair down to 1.3429 1.3392 and 1.3328.
The unemployment claims for the U.S. are due today along with the existing home sales and as well as the Philly Fed Manufacturing data, where better than expected results could most probably result in bringing major pairs down along with gold.
Pound’s Magnified Rally
Pound always has a magnified impact when it comes to any fundamentals of the United States, and as a result of yesterday’s FOMC meeting minutes the GBP/USD gained more than 200 pips in a nice, smooth bullish rally.
The pair is trading at 1.6124 just before the start of the European session where its bearish correction is due and a move below the pivot point of 1.6072 can take the pair down to 1.6028 and 1.5984.
Gold Up in the Air
The precious metal dodged those who were in sell while speculating that the tapering would be done from the side of FED, but that didn’t happen. Those who are technical analysts must have made heavy profit on yesterday’s bullish move on gold because even before the meeting minutes, the metal moved above the 200-EMA on its 5 minute chart where a hint was given that it may shoot up.
Moreover, gold was safe to buy as long as it stayed above 1300 psychological level so it was a buyers bounty yesterday where gold is now trading at 1364 level.