An above-consensus inflation report Monday would go a long way toward ensuring the currency’s advance remains on track. A gauge of the country’s nominal effective exchange rate, which the Monetary Authority of Singapore guides to conduct policy, is showing signs of weakness amid continued global trade tensions and a slowdown in China. Unlike most central banks that use interest rates to tackle inflation and growth, the MAS instead steers the local dollar against a basket of its counterparts, adjusting the pace of appreciation, known as the slope, the width of the target band and the level at which that band is centered.
Based on last week’s price action, the direction of the April Comex Gold futures contract this week is likely to be determined by trader reaction to the uptrending Gann angle at $1329.30.
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures hit their highest levels since late November on the hopes that a U.S.-China trade deal will soon be reached. Gold futures went on a roller-coaster ride last week, first rallying to a 10-month high before giving back most of those gains then rebounding late in the week to settle higher. Natural gas futures rallied last week on the back of weather forecasts that pointed toward increasing demand.
The Pound came out on top last week. Hopes of a delay to Brexit and expectations that Britain will not leave without a deal provided the upside. Trade talks also influenced as did central banks.
Bitcoin prices rose on Friday, clawing back losses from the previous session putting the cryptocurrency on track for its best week in two months.
The U.S. dollar is on track to end the week in negative territory on Friday amid statements from U.S. officials including President Donald Trump that indicated positivity on the trade front.
U.S. stocks retreated from the highest levels of Friday as headlines from wire services of President Donald Trump's Oval Office comments suggest doubt on progress on U.S.-China trade talks. In a letter written by Xi Jinping and read out by Trump, the Chinese leader said he hopes the two sides "redouble efforts to meet half way." Trump meanwhile said perhaps he and Xi will work out the final points or perhaps not. U.S. Trade Representative Robert Lighthizer said a few "very big" hurdles remain. The Chinese delegation will stay two additional days, Treasury Secretary Steven Mnuchin said.
Based on the early price action, the direction of the April Comex gold futures contract into the close is likely to be determined by trader reaction to the short-term uptrending Gann angle at $1324.70.
Gold markets initially rallied during the week but gave back quite a bit of the gains. By doing so, we are forming a massive shooting star which of course is very negative. However, we have a lot of support underneath so this may just be the market getting ready to consolidate a bit.
Gold markets bounced a bit during the trading session on Friday, as the $1325 level has offered support. The question now is whether or not that level holds?
USDCAD trades with dovish bias as positive crude oil price and Sino-U.S. trade talk related headlines influence rally in favor of the Canadian Dollar.
The US dollar struggle during the week, initially trying to go higher but not being able to break above the top of the previous week candle. With this being the case, and the fact that we are at the 61.8% Fibonacci retracement level from the selloff, it looks very likely that we could roll over.
The British pound rallied a bit during the week, breaking the top of the hammer from last week which set up perfectly. We did give back a bit of the gains though, which isn’t a huge surprise considering there’s so much in the way of noise.
The British pound rallied significantly against the Japanese yen during the week, slamming into the ¥145 level. That is an area that of course attracts a lot of attention, as we sold off rather drastically. Looking at the number, it’s also a large, round, psychologically significant one as well so a pullback makes sense.
The Euro rallied during the week, breaking the top of a hammer from the previous week. This is a good sign, and it looks very likely that the value hunters are coming back into defend the 1.1250 level underneath.
The Australian dollar has gone back and forth during the week, showing signs of confusion. However, it looks very likely that we are going to continue to favor the supportive area just underneath. Because of this, I do believe that the action that we are seeing on Friday only reiterates that fact.
The US dollar continues to do very little against the Japanese yen overall, as we are essentially stuck at major resistance. I find this interesting as the USD/JPY pair seems to be acting as a bit of a proxy for the S&P 500. The two are moving in lockstep, so pay attention to both markets.
The British pound pulled back a bit against the US dollar during the trading session on Friday as we took a bit of a breather from Sterling strength.
The British pound fell slightly during the trading session on Friday as we have reached pretty significant resistance above. However, from what I see we have recently broken above the top of a bullish flag, so there are underlying reasons to believe that buyers are going to come back.
The Euro fell initially during the trading session on Friday but has turned around to show signs of life midday, because of this, it looks as if the 1.1350 level should offer buying pressure. With that in mind, it’s very likely that we will chop around over the next 24 hours but it looks to me as if the market is ready to try to go higher.
During trading on Friday, the Australian dollar initially fell a bit during the trading session, but found support at the 0.7050 level again, turning around to show signs of life. Because of this, it’s very likely that the market will continue to rotate in this consolidation area.
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 uptrending Gann angle at 1.1334.