The currency markets witnessed solid volatility in the last two weeks. The EUR/USD pair dropped for five straight sessions in the first week of April before rising for four straight sessions last week. On similar lines, the GBP/USD pair rose moved from 1.495 to 1.496 in the first week of April before bouncing back to 1.5051 last week.
GBP was expected to rise
Most of the market players were caught off guard by a stellar rise in the GBP/USD pair. An almost 500†pip rally was a surprise to me as well, however, some part of the early move from 1.46â€1.48 was anticipated in the report titled “GBP/USD: Minor upswing before further sellâ€off resumes†(https://www.fxstreet.com/analysis/gbpâ€usdâ€forecast/2015/04/14/02/) published on April 14th. More important is the fact that the report was not data dependent and clearly stated an eventual move up even in case of a betterâ€thanâ€expected US advance retail sales data. However, the report did not expect that the pair would continue its upward journey right till the weekend to hit a high of 1.5051.
Gold stayed resilient, contradicted expectation of a drop
The second report titled “Gold Analysis: more weakness ahead, moving in a downward channel†(GBP USD Forecast), published on April 15th, anticipated a drop in the yellow metal to USD 1181.3â€1178.5 by the weekend. However, the metal stayed resilient in the range of USD 1195â€1210 right till the weekend. The view, thus failed, and I may revise my view on Gold this week through a new report.
EUR/GBP: Work in Progress
The final report in the last week titled “EUR/GBP Forecast: Expecting a reâ€test of 0.7050†(Euro Pound Forecast) published on April 17th talked about the relative strength in the GBP and called for a target of 0.7050 over the next two weeks. With German bond yields falling to record lows and a low possibility of Greece reaching a deal on April 24th The pair could drop to 0.7050 in the days ahead.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: Slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.