The monthly retail sales report from the United States showed another month of solid consumer spending at retail outlets. Official data showed that headline retail sales rose 0.2% on the month while core retail sales jumped 1.0%.

The data comes at a time when investors are concerned that the global economy, led by the US, could be slipping into a long due recession.


EUR Weakens as ECB Officials Hint Stimulus Measures

The euro posted strong declines on Thursday. This came as the key support level broke. The bearish momentum in the currency came on the back of ECB official comments regarding possible stimulus measures. Olli Rehn, a governing council member of the ECB, said that stimulus measures could overshoot market expectations. This sent the common currency plummeting on the day.


Will the Euro Weaken Further?

The breakdown in the currency pair after losing the support at 1.1140 could trigger further declines. However, the dynamic support off the lower trend line could come to the currency pair’s rescue. But it is unlikely that this support could hold much longer. A breakdown lower could see the euro testing the previous lows at 1.1030.



GBP Advances as Parties Move to Block No-Deal 

The British pound posted gains on Thursday. This came on the back of news that cross-party government measures were being taken to avoid a no-deal Brexit. The sterling has been in a steady decline since PM Johnson took a hard stance on the Brexit. But, with the latest developments now looking to avoid a hard Brexit, the sterling managed to bounce on the news.


GBP/USD Has Likely Formed a Bottom

Price action in the currency pair has been relatively stable after trading near fresh historic lows. The GBPUSD broke out to the upside from the descending wedge pattern. However, the momentum remains rather weak. Further gains are required in order for the currency pair to maintain the momentum. There is also a risk that the GBPUSD could break the support area of 1.2082 – 1.2026 unless a higher low is formed.



Gold Posts Meager Gains as Momentum Eases

The precious metal traded close to the previous highs that were established earlier in the week. However, the momentum faded as investors digested the news of a possible slowdown in economic growth. With gold prices posting strong gains, it is likely that investors will be looking to book profits into the weekend.


XAU/USD to Consolidate Near Highs

The precious metal is consolidating near the highs. Thus, a sideways range could be formed above the support level of 1509. As long as the previous highs are not breached, gold could be looking to test the support. If the support gives way, then we anticipate a correction toward 1485 where the next main support level stands.


This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.

Authors' opinions do not represent the ones of Orbex and its associates. Terms and Conditions and the Privacy Policy apply.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD trades around 1.1100 amid the Italian crisis, ahead of Fed minutes

EUR/USD is trading around 1.1100, in familiar ranges. Italian President Mattarella will explore if a new government can be formed after PM Conte resigned. The FOMC Minutes are eyed later in the day.


GBP/USD leans lower ahead of the Johnson-Merkel meeting

GBP/USD is trading below 1.2150, losing some ground. UK PM Johnson will meet German Chancellor Merkel in Berlin after the latter called for finding practical solutions on the Irish backstop.


USD/JPY: Bulls re-take 106.50 amid higher S&P futures, Treasury yields

Following a temporary reversal seen on Tuesday, the USD/JPY pair resumes the bullish momentum in Wednesday's Asian trading and regains the 106.50 level, tracking the gains in the US Treasury yields and S&P 500 futures. 


Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Critical technical levels cryptos need to overcome after the summer slide

Late August is vacation time in the northern hemisphere – and cryptocurrency bulls may be at the beach as well. Tuesday's slide in prices lacks clear triggers and perhaps shows some fatigue or profit-taking.

Read more

Gold rebounds above $1,500, remains stuck in tight range

After closing the previous day at $1,506, the XAU/USD pair edged lower on Wednesday as the recovering market sentiment made it difficult for the precious metal to find demand as a safe-haven.

Gold News