USD Stronger. Gold Falling. FOMC in Focus this Week. 4 Interest Rates.

Welcome to this week’s Market Blast Fundamentals.

I’m Brad Alexander and, on behalf of Valutrades, today we will take a look at the Hang Seng Index (HK50), the Dow Jones Industrial Average (US30), USDCAD, Gold (XAUUSD) and EURUSD.

Last week’s US Retail Sales figures were quite positive and we feel that the US Federal Reserve may look at tapering their bond purchasing sooner than expected which will strengthen USD even further.

EURUSD, for example, has fallen to a key level and, if we break this level of support, price action could go back to $1.167.

Gold, as well, is still falling based on a stronger USD and has reached support with the next key level below at $1720.

Investors and traders will be watching the Fed on Wednesday to hear about future Interest Rate decisions and Bond Tapering which will affect the USD.

Under the surface, however, is the US debt ceiling which needs to be raised next week to avoid financial catastrophe, according to US Treasury Secretary, Janet Yellen.

Also, Interest Rate Decisions will be coming from the Bank of Japan, the Swiss National Bank and the Bank of England so we will see lots of volatility on most currencies this week.

On the contrary, CAD is getting weaker, based on a faltering economy, but there is a federal election today and we may see some surprises which will affect CAD.

USDCAD, for example, could be heading back to August highs unless we get some better news from Canada.

Global Stock Indices are falling today with the DJIA, for example, falling below this 100-Day moving average which was a dynamic level of support until now.

We have been predicting this drop in the Hong Kong 50 index all year, based on the interference from China but now one of Hong Kong’s biggest developers may be in default on its debts so, keep an eye on the news.

That’s all for now.  Happy trading with Valutrades and we will see you tomorrow.

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