Brexit, U.S – China trade talks, the Robert Mueller Report and a mass of economic data will provide the markets with plenty to consider in the week ahead.
While calls for a U.S. recession rose on Friday when the 3-month T-Bill and 10-year Treasury yields inverted, gold was merely underpinned by the news. This was because the Euro plunged on the weak Euro Zone economic news, pushing the U.S. Dollar Index higher and leading to lower demand for dollar-denominated gold.
Investing.com - This week precious metals traders will be monitoring safe haven inflows into gold amid fresh fears over the outlook for the global economy and after the bond market flashed a recessionary warning.
Investing.com - This week investors will get to hear remarks from a number of Federal Reserve speakers as they continue to await developments in the U.S.-China trade talks and Brexit will also remain in the spotlight after EU leaders granted the U.K. a two week deadline extension.
After weeks of liquidation, professional money managers may have started to return to the long-side of the gold market. According to the latest government data, gold speculators lifted their bullish bets after three down weeks.
Over the short-run, we could see a volatile two-sided response to the initial release of the report. After that it’s all up to the Democrats and whether they have enough evidence to impeach Trump or if they decide to put their efforts into beating him in the 2020 election.
While a Brexit extension cut the Pound’s losses for the week, risk aversion and a yield curve inversion drove demand for the Greenback and the Yen.
The U.S. dollar climbs in Friday trading, as investors grapples with an inverted U.S. Treasury yield curve and another round of disappointing economic data in the eurozone region that put pressure on the euro.
Equities slid after new reports showed that the manufacturing industries in the U.S. and Germany slid in March, fueling concerns of a global slowdown.
Sterling Pound sets off uptrend following Brextension. Lonnie pair uplifts over weak Iran Export numbers. AUD/USD plunges amidst Euro’s Fall.
Stephen Moore, who President Trump on Friday said he would nominate to the Federal Reserve, said in an interview he will be an "independent voice." Speaking to Bloomberg Television, the campaign adviser to Trump said his previous call to fire Chairman Jerome Powell "was probably written in a time of anger" but that the December rate hike was a mistake that has been reversed. He said he looked forward to working with Powell and that Powell could be a "hero." "I do not want to be disruptive, I want to be somebody that can really help Chairman Powell and the others on that board to construct the best pro-growth, stable price system that we can for this country," Moore said.
Gold markets had an interesting week, slicing all the way up to the bottom part of the uptrend line that had been so important previously. By doing so, we now have fulfilled the test of resistance, and now we have a lot of questions to ask.
The US dollar trying to break back into the previous resistance barrier that starts at the ¥111.50 level, but we rolled over rather significantly to break towards the ¥110 level.
The British pound fell during most of the week, as we continue to see plenty of Brexit nonsense across the headlines. The market simply cannot decide what it wants to do quite yet, although it does seem to be “leaning” to the upside overall.
The British pound fell during the week against the Japanese yen, reaching down towards the ¥145 level. However, on shorter-term charts we are starting to see buyers step back in, as the British got a bit of a reprieve from the European Union in the form of an extension.
The Euro initially shot higher during the week, mainly as a result of the Federal Reserve stepping away from a hawkish stance. That being the case, we have tested the 1.1450 level, which is the beginning of massive resistance.
The US dollar has been all over the place, and that of course has shown itself in the Australian dollar/US dollar pair. We initially started out rather strong for the week but have given up quite a bit of the gains.
The gold market fell a bit initially during the trading session on Friday, but then saw a bit of a recovery. However, we still have a significant amount of resistance above, as we had tested the bottom of the uptrend line from previous trading on Thursday.
The British pound fell initially during trading on Friday but has seen a significant amount of buying pressure underneath as the EU offered the United Kingdom a bit of an extension.
The British pound fell initially during the trading session on Friday, reaching down below the ¥145 level. That being the case, we have found buyers in that area as the market has plenty of technical reasons to bounce.
The Euro continues to get hammered as we dropped down to the 1.13 level after getting poor German economic figures. However, nothing has changed regardless of the last couple of days.
The Australian dollar drifted a little bit during the trading session on Friday but has been somewhat stable in general. That being the case, it looks as if the Aussie continues to attract a lot of attention overall, as we should see value hunters underneath based upon historical action.