Correlation between the Euro and gold | 15 سبتمبر 2020

EURUSD trading plan:

A bullish rally in the precious metals market will have a positive impact on the value of the Euro, since the European currency and gold are correlated with each other. The two-day monetary policy meeting of the Fed’s Federal Open Market Committee for September begins today, with Chairman Jay Powell wrapping the event with a news conference on Wednesday. While U.S. interest rates themselves are unlikely to generate any news at the meeting — with the central bank looking most comfortable with its zero to 0.25% holding rate — Powell will likely revisit at his news conference the Fed’s mission of higher-for-longer inflation. This is a positive signal for gold.

Trading recommendation: Buy 1.1870 and take profit 1.1920.