{"id":156248,"date":"2019-09-27T07:15:51","date_gmt":"2019-09-27T11:15:51","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=156248"},"modified":"2019-09-27T06:55:46","modified_gmt":"2019-09-27T10:55:46","slug":"fed-continues-its-reverse-repo-operations","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/09\/fed-continues-its-reverse-repo-operations\/","title":{"rendered":"Fed Continues Its Reverse Repo Operations"},"content":{"rendered":"
September 27, 2019<\/div>
\r\n<\/div><\/div>

By <\/strong>Orbex<\/strong><\/a><\/p>\n

The Federal Reserve reported that it sold $75 billion in reverse repo agreements on Wednesday.<\/p>\n

This comes as the central bank has been fighting to rein in short term interest rates.<\/p>\n

The move also follows a liquidity crunch that started a week ago. In the second round held on Wednesday, banks requested nearly $92 billion in overnight repos.<\/p>\n

The Fed\u2019s reverse repo operations started on Monday, 23rd September. The Fed injected about $105 billion and a total of $278 billion into the financial system. The operations will continue through Monday, 30th of September.<\/p>\n

German Consumer Confidence Rises on ECB Stimulus<\/strong><\/h2>\n

Consumer confidence in Germany is set to improve in October. This comes following the stimulus measures announced by the European Central Bank.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

Data from Gfk showed that the forward-looking consumer sentiment index rose to 9.9 in October. This was a slight increase from 9.7 in September. The data beat estimates which forecast a decline to 9.6.<\/p>\n

EURUSD Under Pressure to the Downside<\/strong><\/h3>\n

The pair continued to trade flat with price action mostly confined to the narrow range of 1.0944 \u2013 1.0925. On a daily basis, with EURUSD closing flat, there is scope for a rebound.<\/p>\n

This basis comes as the currency pair is trading at the support area. A short term rebound won\u2019t do much as EURUSD will remain confined to the broader range of 1.1030 and the support area.<\/p>\n

\"EURUSD\"<\/a><\/p>\n

Oil Prices Maintain Bearish Trend<\/strong><\/h2>\n

Crude oil prices<\/a>\u00a0continued to be pressured to the downside. This came after Saudi Arabia said that it expects oil production to resume ahead of schedule.<\/p>\n

What once seemed like a major issue in the oil markets has now receded. Despite the declines, the pace has been somewhat limited for crude oil prices.<\/p>\n

A weak economic sentiment from the eurozone continues to point to slower growth which could curb the demand for crude oil.<\/p>\n

Crude Oil Likely to Test Lower Support<\/strong><\/h3>\n

The momentum in crude looks to be stalling. However, prices managed to extend minor declines after closing with a doji pattern on Wednesday.<\/p>\n

Currently, the bias remains to the downside, with the support area of 54.42 within scope. Near term correction will test the resistance level of 57.50.<\/p>\n

\"WTI\"<\/a><\/p>\n

Gold Slips as Investors Dismiss Impeachment Inquiry<\/strong><\/h2>\n

The precious metal was trading subdued a day after it fell sharply. The decline in gold prices came as investor sentiment improved.<\/p>\n

The investing community has largely brushed aside the threat of the US house opening an impeachment inquiry into President Trump. Meanwhile,\u00a0Trump talking up the China trade deal<\/a>\u00a0also raised prospects that there would be some progress on the trade talks.<\/p>\n

XAUUSD Holds the Support Line<\/strong><\/h3>\n

The precious metal extended declines after forming a lower high than we were anticipating. However, the declines stalled near the support line of 1508. With the Stochastics oscillator currently oversold, the near-term momentum points to the upside.<\/p>\n

However, it is unlikely to expect more gains if the upside momentum falls short of pushing gold prices above the recent highs of 1531.<\/p>\n

\"XAUUSD\"<\/a><\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex The Federal Reserve reported that it sold $75 billion in reverse repo agreements on Wednesday. This comes as the central bank has been fighting to rein in short term interest rates. The move also follows a liquidity crunch that started a week ago. In the second round held on Wednesday, banks requested nearly […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-156248","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/156248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=156248"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/156248\/revisions"}],"predecessor-version":[{"id":156266,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/156248\/revisions\/156266"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=156248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=156248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=156248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}