News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/jmcAIW4w5k
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/M9isuvnzqF
  • The British Pound is giving back some of its multi-month gains with some pairs testing notable support despite a positive fundamental backdrop. Get your market update from @nickcawley1 here: https://t.co/6Ct5R0H41F https://t.co/c4rXmMjMrv
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/4dhCP5pnxM
  • Gold is facing the neckline of a Double Bottom Pattern after bouncing off a confirmed longer-term trendline. Is a bullish reversal in order? Get your market update from @FxWestwater here: https://t.co/kLXZewWBMd https://t.co/w1Nu0z569m
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/Gn41XsGktg
  • Rollover is the interest paid or earned for holding a currency spot position overnight. Learn how to earn rollover interest on your open positions here: https://t.co/SRsG8CxjEn https://t.co/2AR1qgx0tz
  • The New Zealand Dollar is in a tricky spot. On one hand, rising stocks can propel NZD. On the other, a dovish RBNZ ahead could cool bond yields as the government tackles soaring housing costs. Get your market update from @ddubrovskyFX here: https://t.co/5rjm2gr3EL https://t.co/aLwhWHMPqz
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/obH0RFLKhC
  • It was a big Q1 for $USDJPY but so far Q2 has been a far different tone. Which side will prevail? Get your market update from @JStanleyFX here: https://t.co/TxlD3zoglZ https://t.co/rUQnokAx30
Gold Sell-off Intensifies as USD Firms- GDP, NFPs, in Focus

Gold Sell-off Intensifies as USD Firms- GDP, NFPs, in Focus

Michael Boutros, Strategist
Gold_Selloff_Intensifies_as_USD_Firms_GDP_NFPs_in_Focus_body_Picture_1.png, Gold Sell-off Intensifies as USD Firms- GDP, NFPs, in Focus

Gold Sell-off Intensifies as USD Firms- GDP, NFPs, in Focus

Fundamental Forecast for Gold:Bearish

Gold prices plummeted more than 2.6% this week with the precious metal trading at $1313 ahead of the New York close on Friday. The losses charged by a massive rally in the greenback after the central bank left policy unchanged, but left tapering on the table at the FOMC policy meeting on Wednesday. When all was said done bullion was off by just 0.3% in October, a month that saw a range of more than $110 or 8%.

With tapering expectations largely pushed out until March, why is gold trading so heavy? Two answers arise, A- with inflation expectations well anchored in the medium-term (latest CPI data print 1.2% y/y & 0.2% m/m), the appeal of gold as an inflationary hedge remains subdued. B- As the economic recovery continues to gather pace, tapering will become more pressing on the Fed, which should in turn offer further support for the US Dollar. There does exist one scenario where the luster of gold would once again come into focus and that is a collapse in broader market sentiment- or in another words, equities. Should the recent 3-day pullback in risk assets develop into a larger trend, look for the risk-off trade to begin to resurface, with such a scenario likely to be supportive of the yellow metal.

Looking ahead to next week all eyes will be on the US economic docket with GDP, NFPs and the University of Michigan confidence survey on tap. Advanced 3Q GDP hits the wires on Thursday with consensus estimates calling for an annualized print of 1.9% q/q, down from 2.5% the previous quarter. October Non-farm payrolls represent the most significant event risk next week as expectations remain tempered on account of the Government shut-down and its possible impact on near-term job growth. Estimates are calling for a print of just 125K, down from 148K in September, with the unemployment rate widely expected to uptick to 7.3% from 7.2%. Again it will be important to note changes in the size of the labor force as we have seen that recent contractions in the labor pool have continued to put artificial downside pressure on the headline unemployment rate. A weak-than-expected read could limit the downside on gold prices in the near-term as investors begin to discount a delay in fed tapering.

From a technical standpoint, gold prices have now retraced 50% of the rally off the October lows after nearly tagging the 61.8% retracement of the broader decline off the August highs. A turnover in daily RSI just ahead of the 60-threhsold and a subsequent 50-break suggests that the larger momentum breakdown off the August highs remains in focus. With the November opening range now be putting in, we will remain prudent noting key support objectives at $1268 and $1233. Note that near-term price action may be stretched here with near-term rallies to be sold. Interim resistance stands at $1330 with only a breach above $1364 invalidating our bearish outlook.

---Written by Michael Boutros, Currency Strategist with DailyFX

To contact Michael email mboutros@dailyfx.com or follow him on Twitter @MBForex

To be added to Michael’s distribution list Click Here

New to FX Trading? Watch this Video

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES