Multiple Inflation Readings in Focus
Gold attempted yet another go at the resistance at $1351/oz., momentarily breaching it but was unable to advance any further ending down at $1349/oz. US statistics from the previous week backed gold as stagflation fears made a comeback with US inflation perceived to be greater, while retail sales were lesser.
EURUSD was goaded by US dollar movement as Europe had no important data announcements in the past week. A flagging US dollar enabled EURUSD reach a high of 1.2550 ahead of Friday’s profit booking and bought it down to finish the week at 1.2410.
GBPUSD too was reinforced by robust inflation figures on Tuesday and a feeble USD.
USDJPY was stumped as the decisive 108 level gave way. Stagflation anxieties surpassed increasing Treasury yields as the dollar was sold.
USDCAD remains to be concerned by the outcome of NAFTA as it goes on to trade in the wide range.
Gold has another fiasco at $1351/oz., it would be important for the bulls that $1351/oz. is breached quickly or a profound amendment as witnessed before might follow. Initial level of support comes in at $1342/oz. and $1319/oz.
EURUSD in the previous week was only very near from the key resistance at 1.2650 before selling resulted. EURUSD remains to be in strong upturn with support seen at 1.2300 and 1.2200. In the coming week investors have EU retail sales and German economic sentiment to wait for.
GBPUSD ended the past week on a frail note. The Brexit stalemate and dismal economic figures remain a strain on GBP. Next week has several important releases on Wednesday with UK jobs figures and inflation hearing keenly awaited. Albeit GBPUSD is within the long-term upturn, the coming week should see some selling with resistance at 1.4100 holding unless the figures astonish on the upside.
USDJPY continues to be weak while abrupt resistance is seen at 106.50 and no key support witnessed till 100.
USDCAD looks feeble on the charts with key resistance seen at 1.2610 and support at 1.2480. Investors would also be eagerly looking out for Friday’s Canadian inflation figures.
