Sterling Ignores Brexit, Euro Remains Weak, Gold Grinds Higher - US Market Open
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Market Themes and Moves – Brexit, Euro-Zone Growth and Gold.
GBP: Brexit once again dominated Sterling headlines after the speaker of the House last night rejected PM May’s third meaningful vote. The market is awash with different interpretations with talk of an extension anywhere between 3- and 21-months the most prominent. Earlier today, UK jobs and wages data surprised to the upside with increased job creation and stable wage growth – the disconnect between a robust labour market and tepid UK growth outlook continues.
Gold: Gold continues to grind higherbut is nearingan area of technical resistance that could halt its move higher. DailyFX analyst Paul Robinson notes that while near-term price action is taking on the outline of a rising channel, ‘a break below the March 14 low at $1,293/oz. should have the path of least resistance in favour of shorts again’.
EUR: The single-currency continues to struggle to move appreciably higher and was not helped today when the latest ZEW data for Germany and the single-block continued to point to economic weakness. While the prints were mixed, news that the German Economic Council had cut its 2019 growth forecast to 0.8% from 1.5% weighed on EUR-Pairs. Any signs of US economic strength from tomorrow’s FOMC meeting may well see EURUSD attempt to break back below 1.1300.
Chart of the Day - GBPUSD: You Can’t Keep the Pound Down
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- Gold & Silver Price Outlook Becoming Increasingly Bearish.
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--- Written by Nick Cawley, Market Analyst
To contact Nick, email him at Nicholas.Cawley@ig.com
Follow Nick on Twitter @nickcawley1
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.