On Tuesday, the American currency has strengthened its position in relation to its main competitors - the dollar index basket (USDX) closed the trading day but around 82.99, the first time since July 2013. However, the main currency pair EUR / USD the second trading day in a row held in a horizontal flat, despite the positive macroeconomic data from the United States. Traders do not hurry to open positions ahead of a meeting of European monetary control and against this background we see the trading range. As a result, trading day for the euro / dollar ended at around 1.3123.
Concerns about tightening monetary policy Federal Reserve continues to put pressure on the metal. Investors cautious ahead of the release of key data series from the United States, including a report on the labor market. It is expected that they will confirm further improve the conditions in the economy, and this will further enhance the expectations of an earlier Fed rate hikes.
Gold is vulnerable in a tightening of monetary policy, since it becomes more difficult to compete with assets yielding interest. As a consequence, investors seek to reduce their positions in the metal before the publication of new data.
Forex. Outlook for euro / dollar (EUR / USD) as of today
On Monday, the pair EUR / USD continued to form a downward trend, dropping to the next one-year low 1.3118. Driver movement continue to serve expectations of a quick launch programs of financial incentives in the Eurozone and a rate hike in the United States early next year.