The Fed decision affected the Euro, Gold, and Silver

The Fed decision affected the Euro, Gold, and Silver

Oct 30 2014

At the end of the FOMC two-day policy meeting, the Fed decided yesterday to end its monthly bond-buying program, amid the signals of recovery in the U.S economy, boosting the US dollar against its major rivals.
The Federal Reserve issued an upbeat assessment of the American employment market. Stressing the significant improvement of the labor sector, this increased the chances of possible interest rates hike soon.

In fact, the Euro Dollar dropped sharply below $1.2600, due to the divergence of monetary policies between the ECB and Federal reserve bank.

In addition, yellow decision has affected negatively the movements of the precious metals, especially the Gold which has witnessed a sharp decline toward $1200 per ounce.

On the other hand, the hawkish statement of the FOMC has pushed the U.S Dollar high, while the demand for precious metals has decreased, so like the Gold, the Silver has continued its down movement toward $16.50

The greenback has continued its recover during today trading session, supported by the increase of the GDP data to record 3.5 % during the third quarter of this year.

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