Falling to 11 Percent

The odds of a Fed rate cut in January fell from 17% earlier in the day to 11% after the release of better than expected Services ISM and somewhat disappointing JOLTS survey on jobs openings. The chart below shows the graphs for expectations of a Fed rate cut for January (Green) and March (White). Focusing on the green graph, see how the probability of a January rate cut fell from 27% in mid December to 11% today, during which the DXY rose while gold also rose. Here is what I think: Even if the Fed ends up holding rates unchanged, expect gold and equities to be propped by an upcoming announcement from Donald Trump revealing his pick for the Fed chairmanship. Looking ahead. Keep an eye on $4400 and $70 as support for gold and silver respectively, with 1.1645 foundation for EURUSD. For equity indices, expect more gains into mid January for now.  Take a look at AAOI here 

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