Recession fears in UK, Gold (XAU/USD) falls on great NFP report, NatGas opens with a gap, again [Video]
|Last week’s US Non-Farm Payrolls report was much higher than expected sending the USD higher and alleviating fears of a recession in the world’s largest economy.
However, the US Federal Reserve, analysts and investors will be watching this Wednesday’s US CPI monthly figures which will tell us about current levels of inflation.
Also on the calendar are some important Manufacturing and GDP figures from the UK.
Last week’s speech by Andrew Bailey painted a very unpleasant picture of the UK economy for the next couple of years so these GDP figures could help or make matters a lot worse.
GBP fell last week based on the speech even though the Bank of England raised Interest Rates.
We may not know the future of GBP until a new Prime Minister is chosen which is less than one month away.
The great NFP report saw Gold falling and this may be giving us a great opportunity to buy but we will look at this from a technical perspective tomorrow.
Our wait for the big JPY reversal continues as the Japanese Yen fell again based on the US vs Japanese Interest Rate differential and Friday’s good NFP report made this worse.
However, we still see technical opportunities and we will look again tomorrow.
Just like last week, Natural Gas has opened with a gap to the downside and the bias is on the Sell side but the unpredictable situation in Russia makes this commodity quite volatile.
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