Gold Bulls Dominate, GBP Outperforms, SEK Sinks - US Market Open

2019-02-19 13:45:00

MARKET DEVELOPMENT – Gold Bulls Dominate, GBP Rises, SEK Sinks

GBP: The Pound has grinded higher throughout the session with GBPUSD testing 1.2950. Much of the gains in the GBP can be attributed to the pullback observed in EURGBP, which is hovering around 3-week lows. On the data front, the UK employment report continued to show that the labour market remains robust (UK jobs review).

AUD / NZD: The Australian Dollar had once again been weighed down by the RBA. In which, meeting minutes provided a somewhat downbeat assessment of the external risks that Australia faces, while the housing market had also been flagged up as a key risk. Consequently, dropped towards the 0.71 handle while NZD also fell in sympathy.

SEK: The Swedish Krona is the notable underperformer in the G10 space after today’s inflation report fell short of analyst estimates and the Riksbank’s forecasts. As such, the SEK plunged over 1% against EUR and NOK given that this will likely reinforce the view that the central bank will be on hold for the rest of 2019.

Gold: The precious metal has continued to go on from strength to strength, despite the USD also edging higher. The global shift among central banks to a more accommodative stance has helped keep gold relatively firm, while fundamental demand via central bank buying has also provided a undertone of support. Eyes are for a test of resistance situated at $1350.