Interest cut? Let's look at this chart. It can be seen that the current dollar interest rate and the two-year forward interest rates the market is slowly losing their relationship. The market is already forecasting two 25 basis points of interest rate cuts.
Interesting this has already hit the target. Is this why you have re calculated the fractal copy on gold with a new target area of 1800?
meszaros
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@DanIrvin, Yes. Exactly. There was a major contradiction between market pricing and the official position of the Fed. It can be seen that the market is expecting an interest rate of around 0.9% over the next 2 years. In my opinion, this will be even lower. The CME platform: cmegroup.com/trading/interest-rates/countdown-to-fomc.html shows that there is a 94% (almost 100%) expectation that interest rates will be cut by 50 basis points at the next Fed meeting. It drives gold upwards and it drives EURUSD upwards. Well hidden behind the crown virus panic.
CoinCaller
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@meszaros, Thank you for sharing this information its very useful.
The Fed must announce a cut premarket today otherwise the water fall will continue.
Captain_Walker
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Excellent assessment! Shocking a dead horse doesn't bring it back to life. Shocking a half-dead market with stimulus liquidity and low interest rates, might cause it to jump a bit. I think that's what's happened. Death may be inevitable.