WCU: Gold lifted by Fed doves while oil pauses
Commodities traded higher for a second week, albeit at a slower pace, with gains being driven by precious metals and the agriculture sector. Precious metals received a boost from a sharp drop in bond yields after the US Federal Reserve pulled yet another dove from its hat.
Brexit gets brief pause, FOMC reaction fades
The initial reaction in currencies to the FOMC meeting has largely faded as the USD reversed most of the subsequent weakening in many USD pairs – yet another failure to establish a USD direction. Elsewhere, sterling rebounded from a sharp weakening move yesterday as the EU has extended Article 50 for two weeks to give May a bit more time.
FX Breakout Monitor: Post FOMC USD breakout yet to convince
The US dollar broke down in the wake of the FOMC meeting, but relative to the dovish surprise we got, the move is so far modest. We’ll look to tomorrow’s weekly close for clues. Elsewhere, sterling traders holding collective breath ahead of a critical week ahead.