Overnight during the Asia session, Gold continued its rebound from last week’s dive and is currently testing $1,780 per ounce to the upside.
The Bank of Japan left interest rates unchanged at -0.1% and USD/JPY bounced off of recent lows back in the neighborhood of 109.50. Further retracement upward in USD/JPY could continue in the London and New York sessions.
The major event for today is the FED interest rate decision at 14:00 EST followed by their press conference. Near term price action in the US Dollar will largely be driven by the FED’s comments and we see a strong likelihood of the Greenback re-asserting it’s recent strength. EUR/USD looks to have it’s sights set on testing 1.1700 to the downside.