Silver steady in the open, focus on the downside

Silver on the verge of a significant pullback.
US dollar could find support at this juncture, both technically and fundamentally.

Ross J Burland FXStreet

The price of silver is soft in the open this week and is consolidating the bout of profit-taking post the Nonfarm Payrolls event on Friday.

By the close of play on Friday, spot XAG/USD was ending at $26.46.

The price of XAG/USD ranged between a low of $25.98 and a high of $26.56 in a consistent upside drift throughout the day and sessions.

In Asia today, the price is losing some 0.13% and has drifted from a high of $26.47 to a low of $26.42.

The greenback had been supported up to the NFP event but the fact was sold on the headline and the lack of wage inflation was an excuse to take in some profits ahead of the long weekend.

A gauge of wage inflation rose 0.3% last month, lower than the consensus forecast for a 0.4% increase.

The NFP print was not strong enough to upset markets nor weigh on precious metals, but from both a technical and fundamental standpoint, the greenback could be on the verge of an upside extension.

DXY daily chart

XAG/USD daily chart

Technically, the probe of 26.50 puts the bulls back in charge and opens risk towards 26.70 mid-May lows.

However, a pullback could be on the cards first:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.