Interest Rate Decisions From FED, ECB and BOJ Causing Volatility to Increase

After interest rate decisions from FED, ECB and BOJ, volatility had increased across the board. The Bank of Japan had surprised markets by loosening its grip on bond yields control. As a result, the Japanese Yen soared against major currencies, driving GBPJPY, USDJPY and EURJPY lower.

Tightening carry trade operations push the escalation in the bonds market, while the risk-appetite in the stock markets still remain relatively high, in spite of some volatility for Nasdaq and S&P 500 indices.

The US dollar rebounded higher, which had pushed Gold down too: there’s no evidence of any conviction from buyers with XAUUSD, as market fear is still quite low.

Net position of commercial traders remains to stay at the previous week’s low, meaning that buying pressure for Gold is simply not enough for creating a meaningful recovery.

Silver is struggling to gain momentum too, though it looks quite steady above $24.

XAU/USD

Gold is consolidating around 1945 – an intermediate-term support area, which would unlikely hold for long enough, and has a chance of moving below $1940.

XOM

After strong earnings reports and rising prices of Crude oil, Exxon Mobil might get into play, as shown at the chart below.