Daily Market Forecast – Gold Continues to Rise, Pound Remains Stable

The U.S Dollar has edged to slightly better values against the Euro the past day, while the Pound has remained stable. And the Yen has gotten stronger in the face of nervous equity results globally.

EUR/USD: Euro May Appear Oversold

The Euro is near the 1.23 level versus the U.S Dollar this morning. The currency will get a real test in the coming hours as European investors return to their offices after their long holiday. Some speculators may look at the Euro and believe it has been oversold the past couple of sessions, but if global equities remain fragile this could prove a challenging short-term trade.

Gold: Escalation in Risk Adverse Trading

Gold has been volatile the past day. The precious metal is around 1339.00 U.S Dollars per ounce this morning. The commodity put in sharp gains on Monday as a sell-off on Wall Street built up steam and risk adverse trading escalated. Gold may attract additional buying speculation if the broad markets stay nervous.

USD/JPY: Asian Investors Nervous After American Session

The Yen has gotten stronger this morning and is below the 106.00 juncture against the U.S Dollar. The Nikkei Index has turned in losses following in the footsteps of the poor performance from American equities. If Asian traders stay nervous the U.S Dollar may continue to be sold versus the Yen in the near term.

GBP/USD: Relatively Stable Pound the Past Day

The Pound has remained relatively stable the past day and continues to trade near the 1.4050 level against the U.S Dollar. Manufacturing data will come from the U.K today, but its impact should be limited unless there is a major surprise. It is the return of full trading in the U.K and Europe which could spur on forex and the Pound this morning. Short-term speculators should be careful.

Crude Oil: Slump on Wall Street Hits the Commodity

U.S Crude Oil slumped on Monday as the broad markets in the U.S came under extreme pressure which did not relent. The commodity is hovering above 63.00 U.S Dollars per barrel and is approaching the lower depths of its short-term range. However, if Wall Street’s sell-off continues, U.S Crude Oil may see additional pressure near term.

Yaron Mazor is a senior analyst at SuperTraderTV.

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