Weak housing data fueled buyers to take positions. In any case, gold rebound seems to be short-lived as the dollar index remains strong, and the good US retail sales data is still in play.
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the long-term uptrending Gann angle at 1.1205.
Investors will get a chance today to react to several economic reports and speeches from Fed members. At 12:30 GMT, the U.S. will release reports on Housing Starts and Building Permits. At 18:30 GMT, Kansas City Fed President Esther George will speak. The Fed is also scheduled to release its latest Beige Book at 18:00 GMT. This report will offer insight into its assessment of manufacturing in the Northeast.
London markets drifted lower as the pound continued its descent and fresh trade war fears hit the FTSE 100.
The British pound on Wednesday traded at the lowest level in more than two years, as concerns about a hasty exit from the European Union continued to pressure the U.K. currency.
Investing.com - The U.S. dollar dipped slightly on Wednesday but still remained near one-week highs after the International Monetary Fund said the greenback is overvalued.
EUR/USD is getting lifted from the psychological 1.1200 handle with aid of better than expected CPI data out of the Euro area.
Investing.com – Wall Street was flat on Wednesday as concerns that lower interest rates will hit corporate bank earnings kept investors in check.
GBP/USD has shed about 1.3% in a two-day decline and is trading at levels not seen since the start of the year.
Markets continue to receive conflicting signals, but a wary mood prevails. Charles Evans from the Fed pointed to the possibility of reducing the rate immediately by 50 points in July, citing the risks of a global slowdown
Investing.com - U.S. futures pointed to a flat opening bell on Wednesday after Bank of America failed to stem concerns about the outlook for the banking sector with its latest quarterly numbers.
It’s a quiet day on the economic calendar, which will leave the Pound in the spotlight. Brexit woes continue to trouble the Pound, which is on the slide this morning…
On the Weekly Chart, the USD/CAD pair appeared to remain sandwiched between the overhead 200-day SMA and below lying 100-day SMA. Today, the market stays attentive to the upcoming BoC June YoY Consumer Price Index (CPI) Core.
Investing.com -- The British pound fell to its lowest in more than two years in early trading in Europe Wednesday as fears over a “Hard Brexit” and a possible general election exacted a higher risk premium for all sterling assets.
Investing.com - The U.S. dollar rose on Wednesday in Asia on the back of the release of strong retail sales data, while the pound traded near two-years low on Brexit concerns.
Investing.com - Gold prices fell on Wednesday in Asia on hints that the U.S. and Iran may be willing to hold talks.
Following the surprise resignation of Mexican finance minister Carlos Urzua last week and doubts over what the business plan for state oil company Pemex would entail the cost of insuring Pemex bonds rose to the highest level in three years. Credit default swaps (CDS) for Pemex bonds, which traders use to insure against a Pemex default within five to ten years, rose on Wednesday, a day after Urzua stepped down, Refinitiv Eikon data shows. The Mexican peso, Pemex and sovereign bonds all fell on the news of Urzua's resignation.
The RBA Meeting minutes revealed that the Bank would keep the doors open for further ease in the monetary policy by a quarter-point soon. The Euro pair and Cable suffered some huge pullbacks today.
Based on the early price action, and the current price at $1409.90, the direction of the August Comex gold futures contract into the close is likely to be determined by trader reaction to the uptrending Gann angle at $1407.50.
Gold markets did very little during trading on Tuesday, which is a bit ironic considering that Silver has actually broken out. With that being the case, one has to believe that we are simply waiting for a catalyst.