The current rise in Gold prices suggests that participants are less likely to believe in a third rate hike this year. In the light of this information postponing the rise to the next year is undoubtedly a bearish signal for the Dollar.
Pound and Dollar upsurge on strong data, making the markets relax. The British currency reacted with growth to the strong statistics, as the publication of the FOMC protocol triggered a small sell-off of the Dollar.
The RBA is caught in-between two economic extremes, which made them keep the rates unchanged. The Euro and Pound are slowly falling, as the Dollar has started to gain momentum ahead of the FOMC protocol.
The Dollar is trying to go on the offensive, as the markets are waiting for the meeting of the United States and Chinese leaders. Oil trades with more declines, as investors are hoping for production curbs for the future.
Saudi Arabia reversed a third of its production cuts
Saudi Arabia reported to OPEC that it raised output above the levels seen in February, allowing oil prices to recover. Oil prices gained 1.5%, also finding support from a weaker dollar ahead of the FOMC meeting.
The pound plummeted on Tuesday, as the prospect of Britain triggering its exit from the European Union weighed on global markets, while demand for the dollar remained underpinned ahead of an expected FED rate hike on Wednesday.