Home Forex Forex Market Analysis Daily Review: Gold, EUR/USD, GBP/USD Technical & Fundamental Outlook!

Daily Review: Gold, EUR/USD, GBP/USD Technical & Fundamental Outlook!

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EUR/USD – ECB Strengthens the Single Currency

The ECB persists constructive. Today, it left monetary policy stable, proving its expectation that net asset purchases will stop in December and policy rates will persist at their prevailing levels at least through the summer of 2019. The ECB also broadly affirmed its forecast for GDP and CPI as well as the risks to an extension, with the latter still seen as widely balanced amid rebounding domestic demand. The only concession to the doves was the acknowledgment that uncertainty relating to protectionism, emerging markets and financial market volatility “gained more prominence recently”.

EUR/USD rose 0.45% to $1.1678 following the European Central Bank’s widely expected unchanged rate decision and signs the central bank is committed to ending its bond-buying program. The EUR/USD has come out of the sideways channel and can head to 1.1718. While the support prevails at 1.1665.

GBP/USD Soars On Hawkish BOE

GBP/USD rose 0.50% to $1.3107 $1.3108 as the Bank of England held rates steady but expressed optimism over the U.K. economy, citing both stronger-than-expected second-quarter economic and wage growth. The GBP/USD is facing a strong resistance near 1.3135 and support at 1.3080. The ascending triangle patterns usually violate on the bullish side and that’s exactly what we can expect from the Cable today. The bullish breakout can lead the pair towards 1.3165

 

Gold Jumps on Weaker Dollar

Gold prices slid on Thursday as investors purchased riskier assets instead of seeking a safe haven in gold, amid hopes for a new round of U.S.-China trade talks. The dollar index declined against a basket of major currencies after data showed U.S. consumer prices increased less than expected in August, paring traders’ outlook that domestic inflation is accelerating.

On the hourly chart, gold has crossed above the significant resistance level of 1198. The immediate resistance can be found at 1209 levels. The leading indicators like RSI crossed above 50, signifying the bullish sentiment of traders. At the moment, 1197 is likely to work as a support.

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