Gold treading water, oil rally continues
Posted 8 hours agoSharePrint
Gold caught between rising yields and weaker USD
The yellow metal is treading water as investors weigh up rising treasury yields against a weaker US dollar and risk-off sentiment in the equities market. Gold is consolidating losses from yesterday, when a rebound in Treasury yields triggered a correction in the precious metal. Further efforts by the Biden administration to progress the USD2.5 trillion infrastructure stimulus plan lifted yields. Higher yields are likely to remain a weight on gold. With a light US economic calendar, investors will be looking towards updates on Biden’s infrastructure plan and sentiment surrounding earnings, which are starting to ramp up for fresh impetus.
Pound surges, UK job data looms
Posted 6 hours agoSharePrint
The British pound has soared at the start of the week. Currently, GDP/USD is trading at 1.3961, up 0.86% on the day.
Will pound break 1.40?
The British pound is on a torrid pace. The currency jumped 0.99% last week and has padded those gains on Monday. GBP/USD is closing in on the 1.40 level, which has psychological significance. This line has been tested several times this year, and breaking above it could provide the pound with further upside momentum.
The US dollar is broadly lower on Monday, as the market appears to have internalized the Fed’s message that any increase in inflation will be only temporary. This has led to a significant reduction in expectations of a rate hike in the near future, which has seen the pound, euro and yen register sharp gains against the greenback. As well, with a lack of data on Monday to direct the currency markets, the focus is on sentiment, which is risk-on. This is another factor
Pound higher ahead of UK job numbers
February 22, 2021SharePrint
The British pound continues to gain ground. Currently, GDP/USD is trading at 1.4047, up 0.27% on the day. The pound has posted two winning sessions and is again in positive territory on Tuesday. The currency has enjoyed an excellent February, with gains of 2.5 per cent.
The UK releases key employment data on Tuesday (7:00 GMT). Unemployment claims fell to 7.0 thousand in December, after a sharp gain of 64.3 thousand beforehand. The estimate for January stands at 13.8 thousand. Wage growth has been accelerating over the past five months, improving to 3.6% in December. The upswing is projected to continue, with a forecast of 4.1%. At the same time, the unemployment rate has been rising and is expected to edge up from 5.0% to 5.1%.