The euro remained in a short range on Friday where it managed to test 1.3500 psychological resistance level as the manufacturing index, import prices, capacity utilization rate, and industrial production data of the United States disappointed the USD investors.
The euro has medium impact economic indicators are due today that include the Current Balance and Trade balance and are set to be released a few hours after the start of the London session on Monday. The pair is facing a strong resistance level at 1.3500 where investors are expecting to see the profit taking move today where the pair may fall down, and could target to give some bearish correction in result to the bullish gains of last week.
On the other hand, the British pound stood firm against the greenback last week as the investor confidence in sterling boosted up the pair up till 1.6130 and closed at 1.6093 level.
There is no such important fundamental due today for the British pound, where a correction is expected in the pair. However, asset purchase facility, public sector net borrowing, and CBI industrial order expectations data are due this week and may shape the direction for the pair.
Even the jobs data was very impressive, but the U.S. dollar couldn’t gain its charm last week where the bulls took over control of the major pairs as the to-be appointed chairperson of Federal Reserve, Janet Yellen, stated that the bond buying plan would continue at least until March 2014 where tapering may be done by only $15 billion.
Stock Market and Gold
Therefore, the stock markets in the U.S. and as well as Asia gained massively, while the dollar fell but the most amazing scenario here is that the gold didn’t gain much. Even news channels are debating on this that why the metal is not gaining its charm and what is keeping the investors to long on it. The most obvious answer as of now is the technical position where it stands, which is keeping the investors from buying it and losing on their investments.
To contact the reporter of this story: Jonathan Millet at email@example.com