By FX Empire.com
Economic Events: (GMT)
08:30 USD GDP Price Index (QoQ) 2.0% 2.6%
08:30 USD GDP (QoQ) 3.0% 1.8%
The GDP Price Index measures the annualized change in the price of all goods and services included in gross domestic product.It is the broadest inflationary indicator.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
09:55 USD Michigan Consumer Sentiment Index 74.2 74.0
The University of Michigan Consumer Sentiment Index rates the relative level of current and future economic conditions. There are two versions of this data released two weeks apart, preliminary and revised. The preliminary data tends to have a greater impact. The reading is compiled from a survey of around 500 consumers.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
Gold Fundamental Analysis Jan. 27, 2012, Forecast
Analysis and Recommendations:
Gold is trading 1725.15 up 25.15
The trade of the year, Gold skyrocketed within minutes of the FOMC statement on Wednesday and continued its meteoric rise throughou the day on Thursday bulldozing all resistance levels soaring to a high of 1730.45. Gold started the week at 1664.65 that is an increase of over 60.00 in 4 days. We should see some profit taking to end the week.
The Federal Reserve said interest rates may remain at current levels until late 2014, reducing the appeal of the USD to international investors, regardless of the positive comments about growth and the economy.
The dollar index dropped to 79.248, and is well below its 80.131 level ahead of the Fed’s policy announcement.
In a news conference, Chairman Ben Bernanke said expanding its balance sheet remains an option and the central bank stands ready to ease further if the outlook worsens. Bernanke said it’s too early to say strong growth is here to stay. As for the bonds the Fed already holds, he said sales of those have been pushed back to 2015.
On Thursday, the jobs report showed that unemployment claims unexpectedly increased, while housing reports were well under the forecast, putting additional pressure on the greenback. The bright spot was durable goods which came in above forecast and showed an increase in manufacturing.
Originally posted here
