The British Pound achieved only limited success against the US Dollar in the currency markets. The GBP/USD cross is still well above the 1.3300 level. Almost all of this increase is due to the ongoing US Dollar’s weakening. US dollar has recently come under renewed pressure following the release of disappointing economic data from the United States. Traders are betting on multiple cuts to interest rates, with the Federal Reserve being the primary driver. In light of this, the Greenback can barely keep its own against the Pound Sterling.
During Friday’s European trading hours, GBP/USD was up sharply on the day, as the mood turned bullish across the investor landscape. A string of disappointing US economic indicators in recent weeks has raised expectation for further monetary easing. Most people are expecting the Fed to make their move later this year.
“GBP/USD sticks to modest gains above 1.3300 on weaker US Dollar” – www.fxstreet.com/currencies/gbpusd
The Euro has been surprisingly strong, with the EUR/USD pair staying stable and even climbing above the 1.1200 mark. The currency is in a death match war with an important psychological milestone. Traders are looking ahead to more US economic data and speeches from Federal Reserve officials.
“EUR/USD holds firm near 1.1200 ahead of US data, Fedspeak” – www.fxstreet.com/currencies/eurusd
Unlike the positive moves in the dollar market, gold prices have lost ground. The precious metal fell under the $3,200 threshold. This action marked a new daily low as the rest of the market continued with a positive risk tone. During the final hour of trading, gold’s steady intraday slide repeated what happened earlier last week, as pessimism returned to the markets.
“Gold price slips below $3,200 mark, fresh daily low amid positive risk tone” – www.fxstreet.com/markets/commodities/metals/gold
In that context, traders are scrambling to keep up with still rapidly changing fundamentals and markets. These new developments highlight the uncertainty that remains in global currency and commodity markets.