Week Ahead: Volatility, Yuan fixing & Cannabis earnings [Video]

LCG Research team London Capital Group

This is LCG’s look ahead to the week beginning August 12th. We discuss the spike in volatility across financial markets with stocks and bond yields plunging and gold jumping above $1500 per oz. We also run down the key economic data release for the week. RW: 79% of our retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing money.

Author

LCG Research team

London Capital Group

EUR/USD faces next resistance near 1.1930

EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.