Will it be a 25 or a 50-bps Fed cut? Uncertainty about the cut is rare, and there are other factors such as the dot plot and Chair Powell's conference. Live coverage of a critical event for Gold, stocks and the US Dollar. Join FXStreet Premium to ask our analysts questions live, read actionable insights and get Gold and signal alerts.
A 25-bps cut would be disappointing and trigger a knee-jerk reaction. However, confidence in the economy and an open door to cut faster later would cause a reversal. Medium-high probability. 3) Big cut, concerned message: Whipsaw: stocks and Gold initially rise, the US Dollar falls, then the Greenback bounces, stocks fall, while Gold holds onto its gains. A 50-bps cut is good news, but if it comes for the wrong reasons, the picture changes.