The foreign exchange market took exceptional swings. Coming on the heels of the release of some crucial U.S. economic data, the GBP/USD currency pair had previously turned back some of its recent losses and exploded to 1.3560. The duo had recently found a floor around 1.3520. Having since reduced much of its retreat, it returned to tackle the 1.3560 area, reacting bullishly post stronger US data.
The GBP/USD has been on a tear lately. This increase is spurred on by positive market sentiment after the US had a surprise-positive Durable Goods Orders report. These results were a boon for the US dollar. In the process, this pressure led to significant selling pressure on gold and other foreign currencies. Yet, an additional contributor to those fluctuations in the GBP/USD pair was the dollar’s strength.
At the same time, gold has been trying to rally back to the $3,300 per ounce level. Having lost their footing under pressure from a stronger US dollar and bettering risk-on sentiment, gold is re-establishing some equilibrium. Analysts note that the precious metal’s challenges signal more fundamental shifts in today’s dynamic market. In particular, their comments look at that crucial $3,300 line.
At the same time, the EUR/USD currency pair saw equally remarkable market moves. Even though both were in correction territory, the pair rebounded from their recent lows. It peaked up at 1.1360, piggy backing off that US data that similarly lifted GBP/USD. The increase is indicative that EUR/USD has found some upward momentum. Traders reacted enthusiastically to the broadly more favorable economic prospects brought into sharper focus by the U.S. non-farm payrolls figures.
The volatility in these currency pairs is a good example of how interconnected our global markets truly are. Data releases can have a significant effect on trading patterns. GBP/USD continues to rally, and gold is attempting to rebound. Traders are on the lookout for any signs from future economic indicators that could dictate their trading strategy.