daytrading april 4 pre-market, page-4

No direction for gold and still range bound.



ECB Rate Announcement: A Non Event

Thursday April 03, 2014 08:27


The ECB has left interest rates unchanged, although after recent much lower than expected inflation data, it was suspected that Draghi would encourage further stimulus to fight the nemesis of deflation. Draghi’s news briefing this morning may shed some light on his mindset going forward if the deflation risk continues to mount. In any case, the prospects for the Eurozone are probably for further future stimulus and that should close the yield gap with U.S. treasuries, which should be U.S. dollar positive. The gold price held to form yesterday, holding the $1,292 resistance, as it held the $1,278 support on Tuesday. The range continues to be in play as the next sound bite may be Draghi’s news conference, but more likely the employment report tomorrow. It will take something special to encourage momentum and a break of $1,300. When markets are moribund, trend moves tend to be South.