Furthermore, in recent trading today, the GBP/USD currency pair has begun to make a comeback after finding itself under the gun earlier in the day. Markets positive U.S. economic data stoked its advances, taking it to 1.3560. It made do with a rapid rebound from the old multi-year base around 1.3520. This upward movement indicates a partial trimming of the pullback, as market participants digest the implications of firmer data on the U.S. economy.
The U.S. Durable Goods Orders data was much stronger than expected during April. In spite of predictions for a 0.1% drop, it posted a surprise increase of 0.2%. The U.S. Dollar rallied significantly on the back of stronger than expected economic data across the board. This move has had an immediate impact on the trading dynamics of GBP/USD. Now that the pair is back testing the 1.3560 range, analysts are keeping a close eye on how this information will continue to drive currency trading direction.
At the same time, the Euro has been equally volatile reacting to U.S. economic news. The EUR/USD currency pair retraced from its lows. It had the best chance of successfully retesting the 1.1360 level after Thursday’s U.S. data helped push up the greenback. So strong were these positive results that they stoked excitement for this summer’s Euro even before the tournament was confirmed. Traders took to these economic figures like ducks to water, propelling the Euro higher toward this pivotal area.
Meanwhile, non-precious metal commodities—especially gold—struggle against improving risk sentiment and a rising U.S. Dollar. Gold tried to recover, heading again up to the $3,300 level per ounce troy. It has been unable to get back on its feet as the market changes underneath it. Consumer demand is improving, but investors are increasingly willing to take on risk which could weigh on gold’s recovery efforts. A stronger U.S. Dollar is weighing precious metal prices, especially gold.
Gold is heading towards the key $3,300 level. Market analysts are cautioning that outside forces, like global currency shifts and macro-economic pressures, will be by far the most important drivers of its trajectory in the days to come.