Dollar dullness continues; SEK and NZD were the leaders in G10 and Gold loves to make its way; Market wrap
Overnight wrap: The falling streak for NZD and AUD since April showed signs of acceleration this week so far, with a weekly gain of 0.80% and 0.65% respectively (11.30 AEST time). In G10 Swedish Krona and the Kiwi dollar rallied more than a percent overnight, 1.70% and 1.20% respectively.
- In EM currencies Turkish Lira rallied more than 2.50%, South African Rand up by a percent and Mexican Peso closed with 0.85% gains.
- Turning to commodities, overnight gold price action reminds me one of the best Gold quote reported by Goldsilver.com “Gold loves to make its way through guards and breaks through barriers of stone more easily than the lightning’s bolt” – Horace
Recent sell-off in the stocks markets encouraged investors to park market in safest place which is the yellow metal Gold. It has gained more than 2% and settled above the 20 and 50 MAs. Our recent Gold bullish forecast and long silver trade have completed the given targets.
- Besides, Brent oil lost further 2.50%, so far reported the largest weekly decline of 5.20% since February 2018.
The Day Ahead:
In Asia, we will see China Trade Balance. Turning to Europe, we will see German final CPI and EA IP. It’s a relatively quiet day in terms of macroeconomic data.
This morning, commodities gave up some overnight gains whereas Brent and WTI recovered marginally by 0.35%.
Turning to the major equity indices, Australia 200 (KTM: AUS200) rallied by 1.50% while Japan 225 index (KTM: XJP225) down by 0.30%.
Chart of the day:
USDJPY: Pivotal finds between 111.80-111.65
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