Today’s Hot Asset for you to Trade On: GBP/USD
On Tuesday, the GBP/USD scaled above 1.5900 and has persisted at this level before of data releases later in the day. The U.K. Claimant Count Change is set for release at 9.30AM (GMT) along with the Unemployment rate. The Unemployment rate is estimated to fall to 5.9% from the previous level of 6.0%. This should be a good sign, although, wage growth is still a major problem since the 2008 financial crisis. The Bank of England will release the quarterly Inflation report, at 10.30AM (GMT), which should have expected volatility.
The trend is sideways. Support is found at 1.5790 and resistance at 1.5945.
The EUR/USD ascended marginally and nearly touched 1.2500 during the American session. Despite showing growth, the movement is still thought to be choppy as there is no sign of a clear trend. All eyes will be on the European Industrial Production data which is predicted to grow by 0.6%. Previous releases showed a very poor decline of 1.8%, the lowest figure since November 2012. The pair should travel back to 1.2400 if the data reads worse than expected.
The movement is sideways. Support is found at 1.2360 and resistance is at 1.2500.
Gold was able to benefit from the weaker dollar and increased from $1,146/ounce to $1,173/ounce. However, prices started to decrease along the Asian session, giving support to a bearish outlook. Popular analyst opinion is that if the stock market continues to rally, the yellow metal may drop even lower.
Two FOMC members are set to give their address today. At 8.00AM (GMT) Charles Plosser will speak about the economic outlook in London and at 5.00PM (GMT) a speech entitled “Clarifying the Objectives of Monetary Policy” will be delivered by Kocherlakota. Any hints in both speeches regarding a possible surge of interest rates will have a negative effect on gold.
The movement is sideways. Support is found at 1,138 and resistance at 1,180.
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