Following the announcement that the US and China will resume high level talks in October, traders decided to book profits in gold and pushed this precious metal to the downside. The sell-off took price action below $1,500, but selling pressure started to recede as forex traders shifted the focus to the ECB meeting this week. Global central banks have increased their gold purchases which is supporting a longer term uptrend and as the global economy continues to cool further, gold is favored to reverse back to the upside and continue its rally....
Forex traders will get key employment data out of the UK this morning. Despite Brexit uncertainties, employers have added jobs and more importantly wages have risen. This will ultimately keep the Bank of England sidelined as wage inflation is on the rise and provide a floor for the British Pound moving forward. Will today’s data deliver? The GBPAUD has started to retrace part of its powerful advance which spanned almost 800 pips over a four week period. Will price action slide further to the downside and into support or will a breakout keep...
On Monday, the single European currency backed down a bit on the eve of the meeting of the European Central Bank, which will be held later this week, at which new incentives are expected from politicians to support a weakening regional economy.
Forex traders will get key UK data this morning which will include monthly GDP data for July, expected to show a small increase to finish the second-quarter. Industrial and manufacturing data is anticipated to come in flat for July, countered by small monthly gains in construction output and in the powerful service sector. Rounding up the range of economic data will be the trade balance for July which is favored to show a rise in deficits with the exception for the visible trade balance. How will the GBPJPY react after the release of today’s...
New home loans as well as investment lending in Australia increased above expectations for July which added bullish momentum to the Australian Dollar. June’s data was also revised higher. China reported a smaller than expected trade surplus for August as exports posted a surprise contraction while imports decreased. This was largely due to a sharp contraction in exports to the US as a result of the trade war the Trump administration intensified over the past few weeks. China is shifting its focus to its growing domestic economy as a result,...