And how Gold affects markets
The past couple of week's have proven to be true with the USDx touching off a sensitive support price @82.05 basis point from a high @83.50 registered since the 1st to the 5th of April.
The gradual decline has now seen some resilience as the US Dollar is being supported with some factors with Oil & Gold prices declining to record lows @USD1321.77 not to mention the Dow dropping to a minus 265.86 points for the day. The uncertainty of the global economy weighed in the market place as the Chinese data have had some negative influence in the market with the Aussie Dollar paying a price declining to it present value @1.0330 from a low @1.0289 at the start of the trading week.
In our recent analysis, upon the opening of the 2nd quarter trading report; the first 2 week's trading performance and market outlook for the USDx to decline apparently held true to its projected price action. But the relative action of the Gold market has held the USD firm and would likely determine its next price action within the next two weeks of trading for April. Although, what would provide a lift for the USD may not necessarily come from US data reports but simply outside fundamentals that may not be economic related but simply may come from market participants sentiments of market trend direction. The recent CFTC COT reports have initially defined that a significant change on speculative net long positions have changed hands alongside with short-covering positions taken for Euro has it traded above the 1.3100 levels. As traders have been caught within their trading parameters when price action and market swing have traded in both directions. Click here to continue
No comments:
Post a Comment