Daily Market Forecast, February 5, 2017 – EUR/USD, Gold, Crude Oil, USD/JPY, GBP/USD

If global exchanges remain turbulent, forex will continue to see choppy conditions and test ranges. Gold has come under pressure and is near important support levels.

EUR/USD: Range Trading Expected Near Term

The Euro is near 1.2460 versus the U.S Dollar early this morning. Traders need to remain alert as broad market volatility boils near term. However, the European currency has remained within the upper tier of its value and appears to have established a fairly stable support level above 1.23. Speculators may be tempted to look for range trades in the coming days, but they should be careful.

Gold: Long-Term Perspective Intriguing

Gold has taken a hit since Friday and is around 1330.00 U.S Dollars an ounce. While downside pressure has been steady and the precious metal is near a dangerous support level, Gold remains an interesting buy if long term perspectives are given consideration. Inflation data from the U.S has shown signs of life, and investors may believe the commodity has the potential to rise.

USD/JPY: Choppy Conditions for Yen

The Yen has experienced choppy conditions early this morning and it near 110.00 versus the U.S Dollar. The Japanese currency lost plenty of value before going into the weekend but has been slightly stronger this morning. The Nikkei Index is slumping badly today, and risk adverse Asian investors may look at the Yen as a safe haven choice.

Crude Oil: A Change of Outlook from Investment Banks

Crude Oil is below 65.00 U.S Dollars a barrel. After some analysts from major investment banks changed their outlook to positive for U.S Crude Oil mid-term last week, the commodity has promptly found headwinds in a contrarian move. However, speculators may continue to look for upside movement from the commodity.

GBP/USD: Pound under Pressure Short Term

The Pound has come under additional pressure, but it remains above the 1.41 level against the U.S Dollar. The Bank of England will conduct its monetary policy meeting this week, and U.K politics will remain in focus. However, it is a U.S Dollar centric trading environment and the Pound could find itself range trading near term.

Yaron Mazor is a senior analyst at SuperTraderTV.

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