The foreign exchange market saw significant action on Tuesday, with the GBP/USD currency pair trading just under the 1.3550 level. The US Dollar was buoyed against its major counterparts, supported by better-than-expected consumer sentiment released in May. At the same time, the EUR/USD pair came under pressure, falling back down towards 1.1350 with the release of robust US confidence data.
During the American trading session, GBP/USD traded just under the 1.3550 mark. This overall trend means that the British Pound is having a pretty tough time as the US Dollar strengthens. Market analysts attribute this trend to a recent surge in consumer confidence. Behind this increase in confidence has been reinforced confidence in the US economy. Because of this, traders are highly attuned to movements in this currency pair.
In stark defiance the EUR/USD twin had a tough time recovering its bullish momentum. At the time, it was trading in the red at just above 1.1350. That represents a shocking step backwards, particularly after previous projections suggested a promising revival. The very positive US consumer confidence number came to make matters worse, killing all the enthusiasm for the Euro.
On Tuesday, gold prices wobbled as the decline continued. They dipped under $3,300 for much of the latter day. The precious metal has had a hard time breaking above this important level. A strengthening dollar and diminished haven-seeking demand weighed on its recovery.
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That’s ultimately keeping traders on the sidelines in this market. They are watching very carefully the developments in consumer sentiment and how that may impact currency valuations. The US Dollar is still very much alive and kicking strong. Its strength is one of the key drivers of the entire foreign exchange trading world.