The foreign exchange market was transformed. GBP/USD has been rising since April 8 and has continued its bullish push. On Friday, during the Asian trading session, GBP/USD was seen trading closer to the 1.3280 level, as demand from investors continued to pick up. As traders head towards the extended Easter weekend, trading volumes are expected to be thinner with the holiday.
Performance wise, GBP/USD is still the one to watch. Gold prices are found firm on Friday after retreating from the peak of $3,358 settled on Thursday. Investors appear to be booking profits during this extended holiday period, which may contribute to a temporary pause in gold’s rising trend. This stability is indicative of a very bearish market mood as traders position themselves with the approach of the upcoming long-weekend.
At the same time, the EUR/USD pair showed some real strength, touching 1.1370 during early EURO sessions on Friday. The immediate effect was a stronger Euro and a weaker US Dollar. Moreover, worries about the economic impact of retaliatory tariffs on the U.S. economy furthered this initiative. The prospect of a US-EEU trade deal has boosted hopes for the Euro. This optimism undoubtedly provided a boost to the Euro’s value in relation to the Dollar.
Even with these positive moves, traders need to stay on guard. A significant statistic highlights that approximately 81.4% of retail investor accounts lose money when trading Contracts for Difference (CFDs) with a specific provider. This hard-hitting statistic reminds us of the dangers of trading in volatile markets. Rather, it serves as a helpful reminder to investors to always do their due diligence.
Remember, none of these perspectives and opinions in money articles are third party — they’re from the authors themselves. They don’t even allude to it – or at least that’s what TPTB would like you to think. Therefore, matters discussed should be viewed strictly as indicative and not as specific investment advice.
Under today’s market dynamics, it is more important than ever to understand the relationship of all factors at play between currency and commodity prices. On the upside, the GBP/USD has built plenty of bullish momentum. For one, traders need to be hyperaware of other contributing factors, such as economic tariffs, that may affect overall market stability.