When European Central Bank policymakers meet on March 7, they are expected to slash growth and inflation projections as the euro zone suffers its worst slowdown in half a decade. Elsewhere, the yen weakened to 110.715 yen against the dollar from 110.45 after Japan's central bank governor raised the possibility of further policy easing.
According to the minutes, the Monetary Policy Board saw “significant uncertainties” on the economic outlook. It also said it saw scenarios where interest rates could eventually rise, or fall. Additionally, it said the probabilities around these scenarios were more evenly balanced than before.
Investing.com - Gold prices rose while the U.S. dollar traded near flat on Tuesday in Asia as traders awaited clarity on U.S.-China trade talks.
Investing.com - The Australian dollar traded lower after the Reserve Bank of Australia (RBA) minutes showed “significant uncertainties” on the economic outlook.
LONDON MARKETS London markets were down on Monday, losing some of the advances made last week, with trading volumes potentially lower due to a U.S. holiday. Investor concerns remain over trade negotiation progress between the U.
Gold markets rallied a bit during the session on Monday to continue to show strength. We have been grinding higher for some time, so this shouldn’t be much of a surprise. Looking at this chart, it’s obvious that the buyers are very determined.
The US dollar pulled back a little bit during the trading session on Monday, but then rallied to show signs of life again. The market has been very bullish as of late, but the last couple of days showed a bit of weakness. Now that we are starting to show signs of life, it looks likely that we continue to see buyers.
The British pound gapped higher to kick off the week, breaking above the 1.2950 level. This is a good sign, and I think that the British pound is trying to come back into play with previous support underneath.
The British pound gapped higher to kick off the week, and then continue to go higher. With that being the case, it’s likely that the market is looking at the US/China trade situation with a bit more optimism as this pair will be very sensitive to it.
The Euro rallied during the trading session on Monday after forming a massive hammer on Friday. At this point, it looks like we are ready to go higher but we have a minor hurdle to overcome in the short term.
The Australian dollar has rallied significantly during the trading session on Monday, showing signs of resiliency yet again. After breaking the top of the last couple of shooting stars, that’s a very bullish sign going forward, and I think we are going to make a move to the upside, perhaps the 200 day EMA.
The euro has been stuck in a trading range against the dollar for several months as growing weakness in the euro zone economy offset dwindling expectations the Federal Reserve will raise U.S. interest rates again this year. "Generally the mood is still quite positive on the outlook for trade," said Adam Cole, a currencies analyst at RBC Capital Markets, adding that he thought the "risk-on" mood would continue. You have a background of quite decent growth and a Fed that is putting rates on hold." However, he said a better way to play the Fed's pausing of rate increases was in dollar/yen, as more Japanese investors choose not to hedge purchases of dollar-denominated assets that already earn a decent yield after 2018's U.S. rate rise.
The British Pound is still completely focused on the Brexit talks. This is the reason why the Pound plummeted significantly last week and the reason it managed to recover later.
The central bank's board announced it after a post-budget meeting with Finance Minister Arun Jaitley and other ministry officials in New Delhi. This was on top of 500 billion rupees paid to the government in August 2018, including 100 billion rupees interim dividend paid in March 2018. Prime Minister Narendra Modi's government has been pushing the RBI for more money ahead of what is expected to be a tight national election due by May to fund a widening fiscal deficit.
The early price action shows support is the pivot at 1.1288. If this move creates enough upside momentum then look for buyers to make a run at 1.1342. Taking out this level will change the main trend to up.
Gold has been resilient lately despite a stronger U.S. Dollar, rising Treasury yields and increased demand for higher risk assets. I think the demand is coming from investors reacting to forecasts for a weaker global economy.
The gold prices rallied significantly during the Friday’s session, reaching towards the $1325 level. The weak economic numbers from the US and the Fed’s dovish attitude will keep supporting the gold prices higher and a break above $1325 level would send it towards $1350 level. The silver prices gapped higher during Friday’s session after testing for the support at the $15.50 level in the previous session.
The pair is getting hammered due to ECB’s dovish attitude and weak economic numbers from the European Union. The pair is likely to continue consolidating between the 1.12 and 1.15 level and will also remain volatile.
Based on last week’s close at $1322.10, the direction of the April Comex gold futures contract this week is likely to be determined by trader reaction to the major Fibonacci level at $1319.70.
GBP trades range bound near previous session highs with a positive bias on Dollar’s weakness ahead of tomorrow’s employment update owing silent macro calendar schedule for the day.
Investing.com - Gold prices edged higher on Monday, rising towards their best level since April as the U.S. dollar weakened on hopes the U.S. and China would hammer out an agreement resolving their protracted trade war.
Based on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the Fibonacci level at .7153.