GBP/USD continues to display impressive resilience. It’s doing a good job of defending the small bids over the 1.3200 mark, as we move into the American session on Tuesday. The currency pair is still going strong. Uncertainty reigned in the financial markets as the economic data painted a conflicting picture and as continued turmoil globally weighed heavily on markets.
The United Kingdom’s Unemployment Rate remained at 4% in the quarter ending in February. That continued stability is a sign of a strong job market. Investors have been underwhelmed by data on Average Earnings, which has capped any gains for Pound Sterling. This absence of upward pressure on wages might lead to worry about consumer spending and economic growth.
Domestic concerns are urgent, but the trade war with China continues to stoke profound uncertainty. This unnecessary and destructive conflict still threatens global economic stability. Longer term, investors continue to worry since headlines like these can quickly reverse market optimism. The current geopolitical landscape further compounds that uncertainty, affecting not just currencies but commodities and cryptocurrencies as well.
EUR/USD loses momentum of its recent exuberance on both sides of the Atlantic. On Tuesday in the European session, it traded back below 1.1350. This weakening is representative of overall bearish market sentiment and could be tied to recessionary signals from the Eurozone.
In a positive sign for the Eurozone’s economy, recent data showed Industrial Production grew by 1.1% in February. This increase is encouraging news indeed! That may not be enough to calm worries about bad investor mood seen in the headlights of the ZEW Survey. Their latest economic sentiment survey showed a staggering collapse of Economic Sentiment—down to -18.5 in April from a relatively robust 39.8. This shift represents an increase of pessimism among investors regarding future economic prospects.
Bitcoin (BTC) price has been moving up, recently crossing above $85,500 as of writing Tuesday. Government monetary policy hasn’t been the only driver behind Bitcoin’s rampant appreciation in value and popularity. Just graph what’s happening to the global M2 money supply, and you’ll see why analysts are bullish on both Bitcoin and Gold.
Gold looks to be holding the line as of Tuesday morning, trading over $3,200 USD after booking some small losses on Monday. Further alleviation of fears surrounding a deepening global trade war has capped bullish XAU/USD potential. Markets are keeping a close watch on developments surrounding proposed tariffs. The combination of sustained geopolitical tensions and a changing sentiment about global risk are still dominating precious metals markets.
The American financial markets are in turmoil. It’s important to add that 81.4% of retail investor accounts lose money when trading Contracts for Difference (CFDs) with this provider. This shocking statistic highlights the danger of trading in unstable markets.