During Tuesday’s European trading session, the GBP/USD currency pair is trading on the defensive, remaining above the key 1.2900 threshold. Investors are reshaping their portfolios. Of importance to them is the upcoming U.S. and E.U. economic data releases. The market’s focus is even more closely directed at Thursday’s flash EU inflation data. Traders are watching closely the US jobs survey, as both will significantly influence trading direction.
And as the dollar comes under pressure from Federal Reserve rate cut bets, that theme is playing out across major dollar pairs. Market participants are bracing for important economic signals. Both these indicators have the potential to change market sentiment and introduce increased volatility. The recent US Dollar bounce has increased the pressure on the EUR/USD pair. It’s now fighting to stay above the 1.0800 mark. This up and down momentum demonstrates the overall hesitation amongst traders as they wait to see what the future brings for several key economic releases.
In the commodities space, the non-yielding yellow metal—gold—has remained a major beneficiary of the prevailing backdrop. In fact, for the fourth day in a row today U.S. gold prices have set new record highs, trading at or through $2000 per ounce. Analysts point to the recent upswing being primarily focused on expectations for cut from the Fed. This change decreases the comparative appeal of interest-bearing assets and increases the demand for gold.
Moreover, the long-to-short ratio of PEPE tokens indicates that traders are relatively bullish on the token. Bullish bets have skyrocketed to their highest levels in more than a month. This recent wave is a sign that positive vibes are spreading among this corner of the market. Please remember that the writer and FXStreet are not registered investment advisors. This article in no way constitutes investment advice.
President Donald Trump is set to make a major policy announcement on Wednesday regarding the imposition of ‘reciprocal tariffs’. Unfortunately, this news increases the uncertainty surrounding market dynamics even more. Traders are looking at this closely as continued rising yields could have big impacts on dollar value and risk sentiment in global markets.