The US Dollar weakened versus all major currencies after minutes of the FOMC Meeting showed that officials are getting ready to add more stimulus if the economy doesn’t show signs of expansion . Today, the Initial Jobless Claims are expected with 365K versus 366K previously and New Home Sales are expected with 363K versus 350K previously.
The Wall Street exchanges closed on a mixed note last night after the U.S. Federal Reserve protocol was published yesterday. Many of the FED's senior officials have supported a third session of quantitative easing (QE3) for the American economy and most are expecting it to happen very soon. This is assuming that the U.S. economy does not show a significant sign of improvement in the near future, which seems very unlikely to happen.
FED officials also said that the interest in the U.S. economy should steadily ascend till 2014. The fed's release caused some volatility in the markets that moved currency pairs (which are related to the dollar) mostly upwards.
The Gold price gained by 1% closing at $1,653.00 an ounce after the FOMC Meeting Minutes were released. Technically, Gold remains in a strong uptrend towards the $1,670.00 level. Gold is at overbought levels according to the daily RSI indicator and a retracement to the $1,640.00 support level is possible.
On the other hand, Crude Oil gained by 0.40% closing at $97.05 a barrel. Technically, Oil remains overbought according to the daily RSI indicator, but is on an uptrend with a target of $100.00. As long as Oil remains above the $96.00 level, it is expected to remain bullish.