Daily Market Forecast – Risk Sentiment Remains Fragile, Gold Prices Drop as Trade War Tensions Ease

The U.S Dollar has been slightly weaker upon the reversal higher on Wall Street which emerged late on Wednesday. However, the Average Hourly Earnings from the States will now become a focus in forex. The Pound has done well the past couple of days, the Yen has weakened. But risk sentiment remains fragile and traders need solid risk management.

GBP/USD: Speculative Investors Eyeing Gains for Pound

The Pound has continued to inch its way high against the U.S Dollar this week. However, strong resistance to the British currency appears to be around the 1.42 level near term and until then speculators may seek additional value. Friday’s inflation data from the States looms large via the Average Hourly Earnings. If the U.S data is lackluster, the Pound may be able to gain going into the weekend.

Gold: Whirlwind of Action for the Precious Metal

Gold has been caught in a storm emanating from the global equity markets. The volatility on the major equity exchanges has caused a whirlwind of activity for the precious metal. If the U.S Dollar becomes weaker in the coming days, Gold may once again test resistance levels approached earlier in the week near 13250.00 Dollars. Gold dropped 0.72% and trading at 1330.00 on Thursday morning.

Crude Oil: Rapid Price Action in Energy Sector

U.S Crude Oil on the surface appears to be within a known mid-term range. However, the value of the commodity has rapidly moved as it reacts to concerns regarding the trade feud between China and the States. Crude Oil has gained the past day and may be ready to test resistance around 65.00 U.S Dollars near term.

EUR/USD: Nervous Sentiment Causing Headwinds for Euro

The Euro has remained rather quiet in forex this week. The currency has failed to venture above the 1.23 level against the U.S Dollar with any sustainable momentum. This could change near term if speculative forces believe the Euro should be valued higher. However, nervous sentiment has seemingly caused headwinds for the currency and risk management is needed.

USD/JPY: Yen Risk Appetite Questioned

The Yen has gotten weaker this morning as risk appetite has shown muscle as the Nikkei Index has gained. However, plenty of questions surround global equities and if another selloff occurs the Yen may see a reversal to stronger depths and test support. Resistance for the Yen is around the 107.20 level short term.

Yaron Mazor is a senior analyst at SuperTraderTV.

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