- We are not obliged to use whole PEPP envelope
- It seems to me we are in line with baseline scenario
This just reinforces the notion that the ECB continues to adopt a more wait-and-see approach and will likely stay that way unless there is a hiccup in the economic recovery or that the recovery is more robust than initially anticipated.
The latter seems unlikely so one can expect the ECB to stay on the sidelines until Q4 2020 at the very least before considering any potential policy tweaks.
As I discussed in the previous review, the Gold is testing the very important pivot support level at $1,912.
Further Development
Analyzing the current trading chart of Gold, I found that the level of $1,912 should be observed carefully since that It can define further direction.
1-Day relative strength performance Finviz
Based on the graph above I found that on the top of the list we got Lean Hogs and Lumber today and on the bottom Gasoline RBOB and Orange Juice.
Gold is very neutral, which is another confirmation for the sideways market.
Key Levels:
Resistance: $1,955
Support level: $1,912
