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
Bearish
Oil - US Crude
Bearish
Wall Street
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
Gold
Bullish
GBP/USD
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
USD/JPY
Bearish
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
More View more
Real Time News
  • RT @FxWestwater: #Euro Technical Analysis: $EURUSD, $EURAUD, $EURNZD, $EURJPY Chart Setups Link: https://www.dailyfx.com/forex/market_alert/2021/04/22/Euro-Technical-Analysis-EURUSD-EURAUD-EURNZD-EURJPY-Chart-Setups.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.co/nX…
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: 0.07% Silver: -0.25% Oil - US Crude: -0.82% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/24SAvh8ude
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/egstowtltH
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.12% 🇬🇧GBP: 0.09% 🇪🇺EUR: 0.09% 🇦🇺AUD: 0.04% 🇨🇦CAD: 0.01% 🇳🇿NZD: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/D9tyhgy0CG
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.65%, while traders in Wall Street are at opposite extremes with 71.89%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/YldZ1a7abi
  • Update on #Cryptocurrencies #BITCOIN -2.72% #BITCOINCASH -5.01% #ETHEREUM +5.15% #RIPPLE -4.21% #LITECOIN -0.24% #DOGECOIN -5.15%
  • Tokyo Governor Yuriko Koike asked central government to declare state of emergency -BBG
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/EXYkozlj21
  • 🇯🇵 Foreign Bond Investment (17/APR) Actual: ¥906.5B Previous: ¥1715.5B https://www.dailyfx.com/economic-calendar#2021-04-21
  • Heads Up:🇯🇵 Foreign Bond Investment (17/APR) due at 23:50 GMT (15min) Previous: ¥1714.4B https://www.dailyfx.com/economic-calendar#2021-04-21
Strong US Q2 GDP Print Will Boost USD, Limit Gold Rally

Strong US Q2 GDP Print Will Boost USD, Limit Gold Rally

Nick Cawley, Strategist

USD and Gold Price, News and Technical Analysis

  • Expectations of a strong Q2 GDP reading will underpin the greenback in the days ahead.
  • Gold may struggle to break the downtrend.

The DailyFX Q3 Forecasts have just been released and cover all the major asset classes.

US Dollar May Re-Test Highs on Strong Q2 GDP

The first look at US Q2 GDP on Friday is the main data release of the week and is likely to give the US dollar a decent boost and confirm a 0.25% rate hike at the next FOMC meeting. The greenback has been sold-off over the last 3-4 days after US President Donald Trump raised the bar in the latest trade spat with China, threatening tariffs on over $500 billion of Chinese goods. The President then doubled down on the greenback, saying that the US currency is too strong – and the Yuan and Euro are too weak – and that the strong USD is hurting the economy.

This week’s GDP release is likely to show a robust pace of expansion in the US with estimates for Q2 growth now seen between 4% and 5%.

The US Dollar is expected to remain relatively well supported ahead of Friday’s number with support seen between 93.00 and 93.33 (July 9 low). Resistance at 93.99 should not prove difficult to overcome which would leave DXY with a clear run at the 95.20 June double top.

US Dollar Index (DXY) Daily Price Chart (November 27, 2017 – July 23, 2018)

Strong US Q2 GDP Print Will Boost USD, Limit Gold Rally

Gold Rally Likely to Stall Unless Trend is Broken

The US dollar sell-off, and the rise in risk-off sentiment, has boosted gold from a low around $1,210/oz. to a current level of $1,230/oz. Despite the uplift, the outlook for gold remins negative while it continues to respect the downtrend from the April 11 high. The precious metal also trades below all thre moving averages and has just climbed out of oversold terrritory according to the RSI indicator. Higher US rates will continue to weigh on gold – the 2-year US Treasury currently trades with a near decade high yield on 2.60% - will gold’s correlation to the Chinese Yuan continues. The precious metal will need to make a decisive break above the $1,236 - $1,238/oz. level to overcome the downtrend, while further upside gains will be limited unless risk-off sentiment ratchets higher.

IG Client Sentiment data shows 87.0% of traders are net-long gold with the ratio of traders long to short at 6.72 to 1.

Gold Daily Price Chart (October 25, 2017 – July 23, 2018)

Strong US Q2 GDP Print Will Boost USD, Limit Gold Rally

If you are new to foreign exchange, or if you would like to update your knowledge base, download our New to FX Guide and our Traits of Successful Traders to help you on your journey.

What’s your opinion on the US dollar and gold? Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at Nicholas.cawley@ig.com or via Twitter @nickcawley1

--- Written by Nick Cawley, Analyst

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

DISCLOSURES