Increased risk of a drop in Gold and Oil - Oanda

Lots of speculation and possible outcomes for the BOJ makes it a more important event than the FOMC rate decision, says Craig Erlam, Senior Market Analyst at Oanda while discussing the outlook for BOJ and Fed events due tomorrow. Ahead of the central bank events and given the individual market fundamentals, Erlam believes the odds of a bearish break in Gold and Oil are high.

Key points

Brent crude – More chance of the rising trend line being breached

Gold – another case of consolidation. Tends to move in the range of $1300-1350/Oz. Potential for a break below $1300 as Fed is seen hiking rates this year

USD/JPY – Consolidation in the pair… markets in wait and see mode ahead of Fed and BOJ