Did you see the collapse of GBP today? 

 

I’m Brad Alexander and in this week’s Market Blast Fundamentals let’s take a look at, Gold (XAUUSD), EURUSD, the USD Index, the FTSE (UK100), and GBPUSD.

The new UK Chancellor of the Exchequer announced tax cuts last Friday to try to prop up the economy.

If you know anything about fundamental analysis, you know that tax cuts will negatively affect a currency and we now see these very ugly charts of GBP pairs with GBPUSD at record lows.

Traders are waiting to see if they should go long on GBP as, just down the street from the Chancellor, the Bank of England may have to raise Interest Rates dramatically to offset the fall in GBP and to fight the current inflation.

The weaker GBP has helped to lift the FTSE but be careful here.

The impending raise in Interest Rates should negatively affect UK equities.

The USD Index was over 114 at one point and we can see from our MT4 Profile of USD pairs that USD strength continues which is a huge problem for the global economy, especially emerging markets with USD debt.

The EUR rebounded a little (except against the USD of course) based on the Italian elections but this could be short-lived.

The JPY is starting to look a bit stronger (except against the USD) based on the Bank of Japan’s comments last week.

Speaking of Central Banks, investors will be watching for more clues today from Tokyo, and from Europe with 3 speeches by Christine Lagarde, and a speech from Jerome Powell.

This week will end with GDP figures from Canada, the United States, and the UK, which will move the markets if analysts don’t like the figures.

The current USD strength has pushed price action on Gold lower, below support into the mid-1600s, and we will look at this again tomorrow.

While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD bulls keep the reins above 0.6800 ahead of RBA’s Lowe, US NFP

AUD/USD bulls keep the reins above 0.6800 ahead of RBA’s Lowe, US NFP

AUD/USD portrays the typical pre-data/event anxiety as it seesaws near 0.6800 during the early Asian session on Friday, after refreshing the 11-week high the previous day. The Aussie pair rose during the last three consecutive days amid broad US Dollar weakness.

AUDUSD News

EUR/USD grinds near five-month high past 1.0500, ECB’s Lagarde, US NFP in focus

EUR/USD grinds near five-month high past 1.0500, ECB’s Lagarde, US NFP in focus

EUR/USD cheered the broad-based US Dollar weakness to march towards the highest levels since late June, before recently taking rounds to 1.0520-30 during the generally quiet early Asian session. Mixed data from Eurozone, United States, failed to tame the bulls.

EUR/USD News

Gold approaches $1,807 hurdle ahead of United States Nonfarm Payrolls

Gold approaches $1,807 hurdle ahead of United States Nonfarm Payrolls

Gold price (XAU/USD) refreshed a four-month high above $1,800 before taking rounds to $1,805-07 during early Friday morning in Asia. In doing so, the yellow metal portrays the market’s cautious mood ahead of the key catalysts.

Gold News

Coinbase Wallet disables NFT transfers as Apple forces 30% fees compliance

Coinbase Wallet disables NFT transfers as Apple forces 30% fees compliance

Coinbase Wallet took a dig at the biggest tech company in the world, Apple, after it was forced to deactivate some of its features. The wallet service of the world's second-biggest cryptocurrency exchange in the world could not follow certain policies by Apple.

Read more

Nonfarm Payrolls Preview: Dollar selling opportunity? Low expectations to trigger temporary bounce Premium

Nonfarm Payrolls Preview: Dollar selling opportunity? Low expectations to trigger temporary bounce

A flashback to 2019 just before 2022 ends? The last Nonfarm Payrolls release is set to show a pre-pandemic level of job gains, around 200,000. Or maybe lower. However, expect another positive surprise – triggering a temporary Dollar bounce. 

Read more

Majors

Cryptocurrencies

Signatures