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Showing posts with the label FOMC

How to Trade XAUUSD During High-Impact News: NFP, CPI, FOMC & Major US Economic Data

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How to Trade XAUUSD During High-Impact News: NFP, CPI, FOMC & Major US Economic Data Introduction Gold (XAUUSD) can move extremely fast when major economic news is released. A technical setup that looks perfect before the announcement can become invalid within seconds. For this reason, traders need a specific plan for high-impact news. The objective is not to predict the news. The objective is to manage risk and wait for the market to reveal its direction. What Is High-Impact News? High-impact economic events are announcements that can cause significant market volatility. Important events for XAUUSD traders include: • Nonfarm Payrolls (NFP) • US Consumer Price Index (CPI) • Producer Price Index (PPI) • Personal Consumption Expenditures (PCE) • FOMC interest-rate decisions • Federal Reserve press conferences • Unemployment data • Average Hourly Earnings • Major US economic reports Why Does News Move Gold? Major US economic data can change expectations about: • Federal Re...

How Federal Reserve Interest Rates Affect Gold (XAUUSD): What Every Trader Should Know

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How Federal Reserve Interest Rates Affect Gold  (XAUUSD): What Every Trader Should Know Introduction Federal Reserve interest-rate decisions are among the most important fundamental events for Gold (XAUUSD) traders. Changes in interest rates can influence the US Dollar, Treasury yields, investor expectations and the opportunity cost of holding Gold. For this reason, understanding Federal Reserve policy can help traders put major XAUUSD price movements into context. What Is the Federal Reserve? The Federal Reserve, commonly called the Fed, is the central bank of the United States. One of its major responsibilities is conducting monetary policy. The Fed uses monetary policy to influence economic conditions, including inflation and employment. What Happens When Interest Rates Rise? When US interest rates rise, interest-bearing assets can become more attractive. Higher rates can also support the US Dollar and increase the opportunity cost of holding Gold because Gold does n...