The foreign exchange and commodities markets were the most volatile. The GBP/USD currency pair dropped to 1.3350 as the greenback gained ground in anticipation of an interest rate hike by the Federal Reserve. Protect yourself with bull puts from moderate bearish pressure on the British pound. Consequently, it is giving back much of its weekly advance.
Gold prices across the precious metals market fell by over 1% Wednesday. This downturn pushed prices under the important floor of $3,400, after a short two-day rally. The drop comes despite positive signs in U.S.-China trade negotiations. This decision is a significant step toward reducing ongoing tensions from decades of conflict between India and Pakistan. With the above in mind, we’re heartened by recent confirmations from the U.S. and China that trade talks will begin anew this weekend.
Though the market bets on what the Federal Reserve will choose to do with policy, a modestly defensive mentality continues to dominate. The EUR/USD pair continues to trade in a very tight range around 1.1350, lacking direction as the market looks for clues.
“EUR/USD holds near 1.1350, awaits Fed policy decision” – source
The uncertainty surrounding the Fed’s interest rate decisions adds to the cautious market mood, limiting significant movements in currency pairs. GBP/USD’s retreat tells the story of this mood, as it continues to trade at 1.3350 after being lowered by the pressure of a stronger dollar.
“GBP/USD retreats to 1.3350 as USD firms up ahead of Fed” – source
In crypto markets Ripple (XRP) continued to strongly defend support at $2.10. According to analysts, if risk-on sentiment returns to investors, demand for XRP will skyrocket, sending prices of the asset skyrocketing.
“US-China trade talks could ignite XRP price rally as risk-on sentiment improves” – source
Some bullish XRP predictions suggest that XRP can make a run towards $3.00 in the next few weeks if the broader market takes a favorable turn.