The Week Ahead In Gold

/0 Comments/in , /by

Where to begin? This week is filled with events that have the potential to be market-moving, and investors will likely need to buckle their seatbelts as the trading week gets under way. A G7 meeting over the weekend, as well as a critical meeting between U.S. President Trump and North Korean Leader Kim Jong-Un to take place on Tuesday will likely dominate financial media headlines. As if that is not enough, both the U.S. Fed and the ECB will be meeting later in the week to make key policy announcements.

 

The G7 meeting comes at a time when geopolitical tensions are high. President Trump has already indicated a willingness to walk away from the group, and the issue of global trade is likely to become a major factor in global financial market stability. Mr. Trump has already expressed his displeasure with the state of trade negotiations, and is likely to leave the summit early. The issue of trade is a major source of tension, and tempers could flare further if no meaningful progress is made.

 

The meeting between President Trump and Kim Jong-Un is both historic and nerve-wracking. The ongoing nuclear ambitions of North Korea have been a major source of global geopolitical angst in recent months, and this meeting has the potential to put some key issues to bed. Both leaders, however, have shown a tendency to change their opinions quickly, and the possibility of anything lasting coming from the meeting is by no means a done deal. If the meeting is seen as being constructive, it could lead to increasing risk appetite and higher stocks. If the meeting is seen as being a “dud,” global markets may see increasing risk aversion and a sell-off in stocks.

 

The U.S. Fed is widely expected to raise interest rates again this week. Although another hike in rates comes as no surprise, investors will likely be very interested in the central bank’s commentary. The central bank has already stated that it is comfortable letting inflation run slightly above its 2% annual target, and its opinion on the state of the economy could provide clues to its plans going forward.

 

On Thursday, the ECB is also set to announce its plans regarding monetary policy. The ECB is expected to discuss an end to its bond-buying program, although such an announcement may come at a challenging time. Just as the central bank is looking to throttle back on its stimulus measures, fresh worries over the health of the EU and the euro are being fueled by recent developments in Italy.

 

Italy will be holding elections later in the year that have the potential to bring major changes to the nation. As one of the EU’s largest economies and its largest debtor, any major changes in the nation’s politics could have significant consequences for the region and its shared currency.

 

Investors will likely pay close attention to any fresh developments in the region, and if Italy were to eventually decide to leave the union, who knows what might be the next domino to fall.

 

Stocks have been able to maintain recent strength, but with numerous major economic and geopolitical issues now making waves, the bull market’s days could be numbered. Gold and other risk assets could potentially stay relatively range-bound until risk assets begin to falter.

The Week Ahead In Gold

/0 Comments/in , /by

The gold market may simply be in a period of treading water until the next Fed meeting later this month. The market has shown a tendency to remain subdued or even lower ahead of such announcements on monetary policy, and then rallying once the decision on rates has been made public.

 

The markets are pricing in a June rate hike from the central bank, with the next hike likely not coming until October or November. The Fed has also alluded to the fact that it may already be close to a rate level that is neither overly expansionary nor overly aggressive. Although the current rate cycle is not likely to see rates get anywhere near levels seen in previous tightening cycles, rates could potentially end up staying at levels that are even lower than expected. In other words, it appears that the era of low rates may not be over, but may be likely to continue for some time. Such a scenario could potentially be highly bullish for gold and other hard assets.

 

Investors continue to cheer on last week’s non-farm payrolls data which showed the U.S. added a solid 223,000 jobs in May. Current enthusiasm may be tempered quickly, however, if geopolitical tensions deteriorate further.

 

Risk appetite remains strong currently in spite of several negative influences. Stock investors have thus far been able to shrug off recent developments in Italy as well as new developments in global trade. Both could be a serious cause for concern and could potentially rattle global financial markets.

 

Italy was unable to form a new government, and will now hold elections later in the year. The nation’s anti-establishment parties seem to be gaining further traction, and if elected could push for the nation to withdraw from the EU. Needless to say, as one of the region’s largest economies-and the largest debtor nation-an Italian exit from the union could have widespread and significant implications for global financial markets. Investors are likely to keep this in mind over the next few months, as a flare-up in tensions could send capital pouring into perceived safe haven assets.

 

Recent tariffs imposed by U.S. President Donald Trump are also making waves. The U.S. last week announced it would impose a stiff 25% tariff on imported steel from Canada, Mexico and the EU. It would also impose a 10% tariff on imported aluminum.

 

The administration used a little-known law that permits the use of tariffs to counter a national security threat. Canadian Prime Minister Justin Trudeau called the move “insulting and unacceptable.” Canada has responded by imposing tariffs of its own on a variety of goods, and the confrontation could hurt consumers on both sides of the border.

 

The move also drew criticism from French President Emmanuel Macron, who reportedly stated “economic nationalism leads to war.”

 

Any further escalation in the war on trade could send shockwaves through global markets. With the U.S. apparently ready to take a hardline approach, investors may become increasingly cautious and demand for perceived safe havens asset classes may see some sharp gains in the weeks and months ahead.

 

Investors continue to cheer on last week’s non-farm payrolls data which showed the U.S. added a solid 223,000 jobs in May. Current enthusiasm may be tempered quickly, however, if geopolitical tensions deteriorate further.

The Week Ahead In Gold

/0 Comments/in , /by

The gold market may simply be in a period of treading water until the next Fed meeting later this month. The market has shown a tendency to remain subdued or even lower ahead of such announcements on monetary policy, and then rallying once the decision on rates has been made public.

 

The markets are pricing in a June rate hike from the central bank, with the next hike likely not coming until October or November. The Fed has also alluded to the fact that it may already be close to a rate level that is neither overly expansionary nor overly aggressive. Although the current rate cycle is not likely to see rates get anywhere near levels seen in previous tightening cycles, rates could potentially end up staying at levels that are even lower than expected. In other words, it appears that the era of low rates may not be over, but may be likely to continue for some time. Such a scenario could potentially be highly bullish for gold and other hard assets.

 

Investors continue to cheer on last week’s non-farm payrolls data which showed the U.S. added a solid 223,000 jobs in May. Current enthusiasm may be tempered quickly, however, if geopolitical tensions deteriorate further.

 

Risk appetite remains strong currently in spite of several negative influences. Stock investors have thus far been able to shrug off recent developments in Italy as well as new developments in global trade. Both could be a serious cause for concern and could potentially rattle global financial markets.

 

Italy was unable to form a new government, and will now hold elections later in the year. The nation’s anti-establishment parties seem to be gaining further traction, and if elected could push for the nation to withdraw from the EU. Needless to say, as one of the region’s largest economies-and the largest debtor nation-an Italian exit from the union could have widespread and significant implications for global financial markets. Investors are likely to keep this in mind over the next few months, as a flare-up in tensions could send capital pouring into perceived safe haven assets.

 

Recent tariffs imposed by U.S. President Donald Trump are also making waves. The U.S. last week announced it would impose a stiff 25% tariff on imported steel from Canada, Mexico and the EU. It would also impose a 10% tariff on imported aluminum.

 

The administration used a little-known law that permits the use of tariffs to counter a national security threat. Canadian Prime Minister Justin Trudeau called the move “insulting and unacceptable.” Canada has responded by imposing tariffs of its own on a variety of goods, and the confrontation could hurt consumers on both sides of the border.

 

The move also drew criticism from French President Emmanuel Macron, who reportedly stated “economic nationalism leads to war.”

 

Any further escalation in the war on trade could send shockwaves through global markets. With the U.S. apparently ready to take a hardline approach, investors may become increasingly cautious and demand for perceived safe havens asset classes may see some sharp gains in the weeks and months ahead.

 

Investors continue to cheer on last week’s non-farm payrolls data which showed the U.S. added a solid 223,000 jobs in May. Current enthusiasm may be tempered quickly, however, if geopolitical tensions deteriorate further.

The Week Ahead In Gold

/0 Comments/in , /by

U.S. markets are closed Monday this week in observance of the Memorial Day Holiday. Traders and investors will be back in full swing on Tuesday, however, as the rest of the week is packed with key economic data.

 

Key economic reports set for release this week include Consumer Confidence, Dallas Fed Manufacturing, ADP Employment, GDP, Weekly Jobless Claims, ISM Manufacturing, Construction Spending and more. The biggest data point will likely be Friday’s jobs report for May. Consensus estimates see 185,000 jobs added with the unemployment rate steady at 3.9%.

 

The Fed is set to hike interest rates again in June, and only a significant miss in the jobs report could potentially give the central bank reason to reconsider another move in the weeks ahead.

 

The Central Banks recent commentary was viewed by many analysts as being a bit more on the dovish side of the ledger, even though the central bank looks likely to hike rates four times this year rather than the previously anticipated three. Comments by some Fed officials seems to suggest that the central bank could be close to reaching an equilibrium-the point at which rates are neither overly expansionary nor overly constricting-and the high point seen in the current rate cycle could be reached sooner than expected.

 

In addition to the data stream this week, investors will be on the lookout for any new developments on the geopolitical front. The cancellation of the U.S./North Korean summit seemed to bring back a bit of the safe haven bid, although it is now looking increasingly likely that the summit may be back on at some point. Without any fresh, bullish geopolitical catalysts, the gold market may simply look to tread water.

 

Recent data from the CFTC showed that net long positions have declined to a 10-month low. Although this data may appear bearish at first glance, it is often used as a contrarian indicator. With relatively few longs in the market currently, any bullish developments could attract a significant amount of buying interest and potentially fuel a sharp and significant price rise.

 

With so much data set for release this week, the dollar index could also be watched closely. The strength seen in the dollar in recent weeks has played a major role in gold’s lack of upside, and further gains could weigh on prices further. On the other hand, any significant misses in key data points could let some of the wind out of the dollar’s sales, and this could reinvigorate the gold bulls.

 

Not only could domestic data fuel price action in the dollar this week, buy fresh developments in Italy could also potentially impact the dollar and the euro. Italy’s president has set the country on a path towards fresh elections, and these elections could determine the country’s place in the EU going forward. With some of the anti-establishment parties gaining more traction, financial markets may become increasingly nervous as elections approach in the second half of the year.

 

The potential for Italy to leave the EU could present a very complex problem for EU policy-makers as they look to wind down there QE program in September. As has already been seen before with Greece, any major problems in the EU or the notion of the union breaking apart could fuel significant risk aversion and a flight to perceived safety assets.

The Week Ahead In Gold

/0 Comments/in , /by

The gold market continues to see some selling pressure, and is now trading around a five month low. Recent dollar strength has likely been a primary driver of gold weakness, while higher stocks and robust appetite for risk are also likely playing a big role as well.

 

This week, investors will monitor ongoing trade negotiations with China, as well as some key pieces of economic data. Wednesday’s release of the latest Fed meeting minutes may be the most heavily scrutinized data point of the week. It has been looking more and more like the central bank will need to hike rates four times this year rather than the previously anticipated three. The minutes could act as confirmation that the Fed plans a more aggressive stance towards monetary policy, and could potentially be market-moving.

 

A more aggressive Fed could keep the recent dollar rise going, although just how much the currency has left in the tank is unclear. The dollar has been climbing along with numerous commodities, and at some point, the negative correlation between the dollar and commodities will likely take hold again. Given increasing deficits, lower tax revenues and other issues, the dollar could very well stall out and reverse course.

 

Rising treasury yields and crude oil prices will also remain an area of investor focus. The yield on the benchmark ten year note is holding steady above the 3% level, trading at 3.07% on Monday. The notion of higher yields has given some stock investors reason for pause in recent months, but apparently yields have not yet risen high enough to put a significant dent in stocks or risk appetite.

 

The idea of the ten year hitting a 4% yield this year has been gaining some traction, and at that level may prove to be a much more significant hurdle for higher stocks.

 

Oil has been steady and maintaining trade over the $70 level. Higher oil prices could be considered bullish for gold, as rising prices are considered inflationary. The notion of $100 per barrel oil seems to be picking up steam, and if oil continues its recent ascent it is likely to keep a solid floor under gold and other commodity prices.

 

It was reported that U.S. Secretary of State Mike Pompeo recently suggested that the U.S. could impose the “strongest sanctions in history” against Iran if the country does not make significant changes to its foreign and domestic policies. The U.S. recently pulled out of the 2015 Iran nuclear deal, and is taking a more hardline approach to the nation. Sanctions could have a significant impact on the oil market, and may also keep upward price pressures going.

 

Although the gold market has been under pressure in recent weeks, the fundamentals still appear to look strong. Increasing inflation, the geopolitical landscape and increasing odds of the next recession may all serve to keep prices from falling much further.

 

Outside of any major geopolitical events, the gold market will likely start to see a more significant and sustainable rally once the bull market in stocks has run its course. With asset reallocating already underway, this could be coming sooner rather than later.

The Week Ahead In Gold

/0 Comments/in , /by

Although Monday will be a slow day in terms of economic data, financial markets will have plenty to digest the rest of the week. Investors will get the latest readings on Retail Sales, Empire State Manufacturing, Industrial Production, Housing Starts, Weekly Jobless Claims and more. There will also be several Fed officials speaking this week at various engagements, including James Bullard, Neel Kashkari and Lael Brainard.

 

Investors may, however, be most concerned with U.S./China trade negotiations that are set to begin on Tuesday. In addition, the U.S. could reach a decision on the NAFTA Agreement with Mexico this week.

 

The issue of global trade has been, and will likely continue to be at, the center of the marketplace’s attention. It was not long ago that the notion of a full-blown global trade war roiled financial markets, sending volatility to the highest levels seen in some time. Although markets have been calmer since, any hawkish rhetoric on trade still has the potential to set investors into panic mode, fueling higher volatility and selling across risk assets.

 

The gold market has largely held its ground recently even as stocks once again show signs of renewed strength. The stock market may, however, be considerably more fragile at this point. Like a house of cards, stocks and risk assets could come toppling down quickly on any number of potentially bearish influences. Increasing tensions over trade, rising inflationary pressures and upcoming midterm elections could all potentially fuel volatility, causing investors to seek out alternative asset classes.

 

Stocks may be heading right into some serious headwinds, and once things start to go south, gold and other perceived safe haven assets could see significant inflows.

 

Investors will also continue to watch the dollar this week, which recently traded at a 4.5 month high. The greenback has seen a good bounce in recent weeks, taking some of the wind out of gold’s sails in the process. The idea of a significant and sustained rally in the greenback, however, is not likely to happen. A cautious Fed, higher deficits and ongoing geopolitical turmoil may all work against the dollar, keeping any sizable rallies at bay.

 

The greenback has been a major driver of price action in gold and other hard assets in recent months, and will likely continue to exert a heavy influence on gold and other dollar-denominated commodities. That being said, if or when the dollar does turn down once again, the bears could have enough to push prices to multi-year lows. Such a move could potentially send gold prices back towards previous all-time highs.

 

Finally, in addition to stocks and the dollar, the crude oil market is also worth watching. Prices have traded above the $70 per barrel level for the first time in years, and have continued to show strength. With Venezuelan output declining, the U.S. pulling out of the Iran Nuclear Deal and a June OPEC meeting on the horizon, prices could remain steady to higher. Stronger crude prices are inflationary, and if prices continue their recent ascent other commodity prices are likely to move higher as well.

The Week Ahead In Gold

/0 Comments/in , /by

Gold prices may see some pressure to start out the week, as the effects of a stronger dollar continue to take a toll. Just how much the dollar has left in the tank remains unclear, as soaring deficits and geopolitical issues could weigh on the currency.

 

Despite the recent dollar strength, the commodity space is looking more and more bullish and could be embarking on a commodity “super cycle.”

 

Crude oil has been a leader in the space in recent months, and will likely dominate much of the headlines this week. Crude oil is sitting around a 3.5 year high, with Nymex crude oil trading above $70 per barrel. Brent crude is also stronger, with the bulls setting their sights on $76 per barrel. Higher crude oil prices are indicative of inflation, and could help “inflate” other commodity prices as well.

 

The oil market could see some volatility this week, as a deal struck with Iran in 2015 to curb its nuclear ambitions may not be renewed. If the deal is not renewed, the U.S. could reapply sanctions against Iran, dramatically cutting Iranian oil exports. This could cause a sharp price spike in the oil market that could potentially lift the price of gold and other commodities as well.

 

Investors will continue to monitor the data stream closely this week. The markets have seemingly priced in another three rate hikes for 2018, while the Fed has alluded to only two more rate increases. Last week’s non-farm payrolls data was solid, with the unemployment rate dipping to 3.9 percent. The data did not, however, show any wage growth as wages rose just .1% month-over-month and 2.6% year-over-year. The lack of wage growth could keep the central bank leaning to the dovish side of the ledger and could keep the Fed sticking with its original plan for three hikes in 2018.

 

This week, investors will get the latest readings on the Consumer Price Index as well as the Producer Price Index. These data points will likely be the highlight of the week, and could potentially put to bed the idea of a fourth hike this year. On the other hand, if the gauges come in hotter than expected, it could give the Fed reason to become more aggressive and could cement an additional hike, perhaps taking place next month.

 

Despite some of the recent ups and downs, it is important to remain focused on the big picture. The gold market has been building a strong base now, for the last several years. The wider the base, the higher prices may potentially go. The current backdrop of sovereign debt issues, aging stock bull markets, weaker fiat currencies and numerous geopolitical issues could set the stage for a significant and protracted run higher in gold and other commodities. It would seemingly not be a question of “if” but rather “when.”

 

That being said, any dips in the price of gold should be viewed as buying opportunities. The commodity bull market is just getting started, and like the recent bull market in equities, could see prices move higher for several years or more.

 

The Week Ahead In Gold

/0 Comments/in , /by

Rising bond yields and the dollar will likely remain key areas of focus for investors this week. The ten year note yield has been flirting with the three percent yield level, and has already caused some significant investor anxiety and market volatility.

 

After trading in a range from 88 to 90 or so, the dollar index has put together a bit of a rally in recent sessions, pushing prices to almost 91.50. Whether or not the recent run higher is sustainable is another question. 

 

The dollar has been propped up by higher yields and an unwinding of the short dollar trade, which had gotten considerably crowded. Although higher yields may provide some support for the currency, a swift reversal in yields also has the potential to bring the dollar right back into its previous range, or even lower.

 

Wednesday’s FOMC meeting announcement could potentially have a significant impact on both yields and the dollar. No action is expected from the central bank at this meeting, however, investors will be very interested in the central bank’s statement. Markets have now priced in three additional rate hikes in 2018, while the Fed sees only two. A hawkish tone in the central bank’s commentary could set the stage for a June rate hike, fueling further dollar upside in the process. Such a scenario could potentially have a knee-jerk, negative impact on gold prices. A lack of any hawkish rhetoric, or even a more dovish tone, however, could take the wind from the dollar’s sails and fuel buying in hard assets like gold.

 

Following the FOMC meeting, investors will then turn their attention to Friday’s non-farm payrolls data for April. The economy is at or near full employment, and investors will likely be more concerned with wage data as opposed to the headline number. Rising wages could point to further economic strength, and the potential for a faster rate of  monetary policy normalization. Higher wages would also indicate that inflationary pressures are on the rise, which could be considered very bullish for gold.

 

Further signs of inflation could keep upward pressure on bond yields. If the benchmark ten year note is able to maintain a yield of three percent, positive economic data could potentially send yields sharply higher in short order. Some analysts have already suggested that a 3.5 to 4 percent yield is likely in the cards in the months ahead.

 

Although higher yields may have weighed on gold in recent weeks, an ongoing move higher in rates could potentially be a major bullish catalyst for gold. The only reason the Fed would look to become significantly more aggressive with rates is if falls behind the inflation curve. If that proves to be the case, investors could seek out hard assets like gold to provide a hedge against rising prices and a decline in purchasing power. Not only that, but higher rates may pressure stocks, as more attractive yields compete for investor capital. Much of that capital could, however, find its way into the gold market as investors seek out alternatives with more potential upside.

The Week Ahead In Gold

/0 Comments/in , /by

Recent developments have shown just how quickly the geopolitical landscape can change-for better or for worse. Fortunately, in this case, it has been for the better.

 

The conflict between the U.S., its allies and North Korea has been widely discussed for several months now. The North Korean regime has conducted multiple nuclear tests, has fired several missiles, and has been talking up its military capabilities for some time now. The saber rattling clearly caught the attention of global leaders, who want North Korea to give up its weapons program or face further consequences.

 

In a surprising move, the nation recently stated that it would immediately suspend nuclear and missile tests. In addition, the country also said it would scrap its nuclear test site.

 

The country’s leadership has suggested that it is willing to put a stop to the program because it has already achieved its goal of developing such weapons. Although the news represents a major development in non-proliferation talks between the U.S. and North Korea, it does also fall short of Washington’s demand that the nation completely dismantle all existing missiles and weapons.

 

Although recent comments may be construed as a big step in the right direction, global leaders will be looking to action. The news will likely, for now, deflate some of the recent flight-to-safety bid in the gold market.

 

In other geopolitical news, recent tensions between the U.S. and China also appear to be cooling off. After trading tariff threats over a period of weeks, the two nations appear to be looking for a way to bridge the gap on trade. It has been reported that U.S. Treasury Secretary Steve Mnuchin may be headed to China to discuss the matter and seek a viable resolution.

 

Central bankers and finance ministers have suggested that the potential for a trade war represents a great threat to the global economic upswing, and increasing tensions over global trade could fuel further significant market volatility.

 

Like market volatility, the heightened geopolitical tensions seen in recent months appear to be mean-reverting, or calming down to more “normal” levels.

 

The question is: will it last?

 

As the geopolitical landscape takes on a calmer tone, investor focus is likely to turn to market fundamentals and key outside markets. The dollar index will likely be a primary area of focus this week as it has been a major catalyst for higher gold.

 

The dollar index has seen a recent bounce, as bond yields climbed and the yield curve steepened. Although the dollar still remains vulnerable to a fresh leg lower, higher yields could keep the currency from falling much further, and could put a halt to the short dollar/long gold trade seen in recent weeks.

 

Should that prove to be the case, the gold market is likely to tread water in the absence of any fresh bullish inputs. In the meantime, any dips in the market could present an excellent buying opportunity and long-term value. Given the amount of potential headwinds for stocks and risk assets at this point, a sharp and significant rally in gold would not seem to be a question of “if” but rather “when.”

The Week Ahead In Gold

/0 Comments/in , /by

The gold market has numerous bullish factors currently at work that could potentially take prices sharply higher in the weeks and months ahead. Although the numerous geopolitical headwinds being seen around the globe could play a role in higher gold, there is likely a far more significant issue that could be behind any upside breakout.

 

The dollar index has struggled to put together any sustainable move to the upside. The currency’s lack of traction has caused the greenback to trade within a range, moving sideways between the 88 and 90 levels. Although the dollar bulls have stopped the bleeding- at least for now, the currency is facing some serious challenges that could not only prohibit any moves higher but could set the stage for a dramatic decline.

 

The dollar is not far from its recent lows around 88, and another test of the recent lows could give way to a much larger decline. The notion of an even weaker dollar could be the primary force fueling action in the gold market. Despite numerous other bullish inputs, a weaker U.S. currency could propel gold sharply higher from current levels.

 

A bearish case for the dollar has become quite compelling in recent months. An exploding deficit, relatively low interest rates and the global reflation trade have all weighed on the dollar, and may continue to do so throughout 2018. Of particular note is the fact that the dollar has not seen much of a bounce even as the geopolitical landscape becomes increasingly unstable. This could be indicative of an investor preference towards hard assets like gold in lieu of dollars.

 

To put it simply, recent price action in gold may be a dollar trade and not a fear trade.

 

The trading week ahead will bring some important pieces of data as well as some commentary from Fed officials. The Fed’s Beige Book due for release on Wednesday as well as Leading Indicators to be released on Thursday could be focal points for investors this week.

 

The Fed has recently reiterated its plans for further rate hikes in the months ahead, and any surprises from the Fed have the potential to be market moving. Despite its plans for further hikes this year, however, the dollar could still continue to lose ground as other global central banks take a more aggressive approach towards normalizing monetary policy.

 

The gold market could potentially find itself in a bullish position either way. If the Fed raises rates as planned, or even becomes more aggressive with a larger or fourth rate hike, stock investors may become weary and begin exiting the market in larger numbers. As risk aversion increases, investors may seek out alternatives.

 

The central bank could, however, also elect to keep its foot on the gas and refrain from additional hikes at this time. St. Louis Fed President James Bullard was quoted recently in an article from marketwatch.com, and questioned the need for further hikes at this time. According to the article, Bullard referred to the current level of rates as being “quite close to neutral right now,” meaning that rates are neither fueling nor dampening inflationary pressures. Mr. Bullard also reportedly questioned the need to implement rate hikes in order to counter temporary fiscal stimuli such as the recent tax cuts or spending bill passed by Congress.

 

Bullard’s opinion appears to be in stark contrast to that of some other Fed officials, who have voiced a far more hawkish view. Either way, there appears to be some considerable disagreement between the policy hawks and doves that could fuel market uncertainty.

 

Not only would a lack of action from the Fed send mixed signals to the markets, but it could also have a huge impact on the dollar which may already be on very thin ice.