GBP Still Climbing Against USD, EUR, CHF and JPY. Gold Under Pressure.Based on the great news from the UK regarding the COVID vaccine progress, and better economic news from last week, the Pound seems to be the favourite long trade among hedge funds and we will see further gains against the Euro, Dollar, franc and yen.
But, tomorrow’s UK Claimant Count Change and Wednesday’s speech by Andrew Bailey may set the tone for future gains.
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As you can see we have a lot of economic news events all week so watch for volatility especially when US Fed Chair Jerome Powell testifies tomorrow and Wednesday, a New Zealand interest rate decision Wednesday, and the US Crude Oil Stock Oil Change as well.
We can see drops in prices recently in WTI and Brent Crude with WTI below $60 but the inventory count will tell the market about the effects of last week’s deep freeze in Texas and production overall.
Of course, we have to look at our favorite correlation with the Canadian Dollar increasing in value against the USD and with the growing price of Crude.
But, watch USDCAD in particular and price action is still trying to break support.
Gold is still under pressure but buyers and sellers are still fighting over the $1800 mark and we are now seeing it well below the 200-day Moving Average.
If price action breaks below support, the price could hit $1700 again.