Forecasts & Analysis | Fundamental, Page

Gold prices remain overbought

As far as the Fed speakers are concerned, don’t expect anything from Fed Chair Powell. He’s giving a speech to a foreign relations group. The other speakers, well what has changed in the U.S. economy since last Wednesday when they voted 9 to 1 to hold rates steady?

The upside momentum seems to be slowing as investors shed risky assets ahead of the G-20 summit and the easing of tensions in the Middle East. However, prices are likely to remain in a range until the API report at 20:30 GMT. A bearish report will give investors a reason

GBP/USD pushed higher in early European trading to levels not seen since late May. The pair is threatening to break a critical resistance level that could lead to renewed upside momentum.

Traders responded to the mention of heat in the forecast and the weak shorts were taken out. This was a normal move. In order to drive the stronger shorts out of the market, the forecasts are going to have to show lingering heat or heat domes over wider areas.

EUR/USD corrected lower in early day trading after a four consecutive day rally. I expect the pair will be bought on dips, especially ahead of several Fed Speeches that are scheduled later in the day.

Ahead of the day, Fed Chair Powell Speech and Consumer Confidence Index are must-watch events. On a broader technical view, the pair appeared to maintain a healthy uptrend.

Consumer staple buck the trend

Managed money is very short natural gas

Gold surges to 6-year highs.

The three dominant talking points from discussions I’m having with clients centre on Gold, Bitcoin and the USD.

For the rest of the session, continue to monitor the direction of Treasury yields and the dollar index. If both start to rise then look for gold to weaken since this will likely give long investors an excuse to book profits at current price levels.

EUR/USD rallied about one and a half percent last week and seems to be trying to break out. The pair was last seen heading toward the 1.1400 level and there doesn’t seem to be a lot of sellers.

I have to conclude that cooler heads will prevail for the time being and negotiations will begin without any preconditions. The market is likely to remain underpinned by the threat of escalated tensions, but once we start getting inventories reports from the American Petroleum Institute (API) late Tuesday and the

After an impressive surge higher on Friday, GBP/USD has fallen back a bit from a horizontal level that has held it back for a month. With the momentum behind the recent rise, I suspect the pair will look to break higher sometime this week.

Before the start of storage season, U.S. gas storage was 33% below the five-year average. Now it stands 11% above where it was at this time last year and only 8% below the five-year average. Unless there is a drastic change in the weather and demand spikes higher, the chances

US Secretary of State Mike Pompeo said “significant” sanctions would be imposed on Iran today. Chances of any trend reversal in the near-term stay low as the RSI moves, replicating the pair’s movements.

Gold traders are going to continue to take their cues from the direction of Treasury yields and the U.S. Dollar. The best chance for another spike to the upside will be on Tuesday when Federal Reserve Chairman Jerome Powell speaks.

Gains could be limited if traders decide to take the U.S.-Iran military conflict premium off the table, at least temporarily. The G-20 meeting between Trump and Xi will probably take place over the week-end so this won’t be an issue during the week unless the meeting is cancelled.

On Wednesday, expect the Reserve Bank of New Zealand to leave interest rates unchanged, while reiterating its easing bias and highlighting the risks to global growth. The RBNZ could also express concerns about rate cuts in the United States and Australia since they will have an impact on the value