Gold, Dollar & Nasdaq React to FOMC Decision, Fresh Projections

Gold, Dollar & Nasdaq React to FOMC Decision, Fresh Projections

Sep 16, 2020 (MENAFN via COMTEX) —

(MENAFN – DailyFX) GOLD, US DOLLAR, NASDAQ – MARKETS REACT TO SEPTEMBER 2020 FED MEETING

FOMC decision leaves the target federal funds rate on hold near zero as expected Fed officials upgraded economic projections for GDP, unemployment and inflation Nasdaq edges higher while the US Dollar and gold price action whipsaw in response

The Federal Reserve just released its latest monetary policy statement where the central bank reiterated its dovish position. The September 2020 FOMC Statement stated that the benchmark federal funds rate was left unchanged at 0.00-0.25% as expected. The Fed announcement also revealed intent to continue purchasing Treasury securities and agency mortgage-backed securities at least at the current pace. Interestingly, two Fed officials dissented from the latest FOMC decision as they opt for greater flexibility on policy going forward.

{{GUIDE_TRADE_THE_NEWS_BEGINNERS}}FOMC SUMMARY OF ECONOMIC PROJECTIONS – SEPTEMBER 2020

Chart Source: Federal Reserve

The September Fed announcement also included updated quarterly economic projections. The Federal Reserve upgraded nearly all of the key economic variables tracked – like real GDP, unemployment, and inflation – compared to June forecasts.

US DOLLAR INDEX PRICE CHART: 5-MINUTE TIME FRAME (16 SEP 2020 INTRADAY)

Chart created by @RichDvorakFX with TradingView

The US Dollar reacted negatively immediately after the September FOMC statement crossed market wires. USD price action has since whipsawed back higher to trade about flat intraday, however, and could be due to relatively better US economic outlook.

Recommended by Rich Dvorak Forex for Beginners Get My Guide GOLD PRICE CHART: 5-MINUTE TIME FRAME (16 SEP 2020 INTRADAY)

Chart created by @RichDvorakFX with TradingView

Gold price action is mirroring the direction of the US Dollar. The precious metal extended higher right after the FOMC statement

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