In this article, we have covered the highlights of global market news about the CAD/USD, GBP/USD, Gold Price and Silver Price.
CAD/USD will go decisively below 1.2800 as US PCE and Canada GDP are anticipated
The US dollar index (DXY) has extended its losses after breaching the five-day-old support around 106.00, and the USD/CAD pair is preparing for a hostile move as it hovers near the psychological support of 1.2800. The asset has been trading sideways during the Asian session and is anticipated to become imbalanced to the negative as concerns about a US recession have been raised by lower-than-expected US Gross Domestic Product (GDP) figures.
The US Bureau of Economic Analysis estimated the annual Gross Domestic Product (GDP) at -0.9% on Thursday, a better result than the previous contraction of -1.6% but still below projections of 0.5%. The US economy has been contracting steadily, which has caused the DXY to plunge sharply. The asset just printed at 105.85, a new three-week low.
Investors need to be aware that the Federal Reserve (Fed) has been announcing policy tightening measures without hesitation due to the US economy’s strong fundamentals, allowing Fed members to sound confidently hawkish. Investors’ attention will be focused on today’s session’s publication of the US Personal Consumption Expenditure (PCE), which is anticipated to be high at 6.7 percent. Price pressures have not yet shown weariness, and Fed Chair Jerome Powell won’t be pleased with the weaker GDP figures.
GBP/USD continues to aim towards 1.2240 – UOB
24-hour view: “We said yesterday that the key resistance around 1.2240 is unlikely to enter the picture because of the overbought circumstances, but the quick climb still has the opportunity to advance. There is an additional barrier at 1.2200, we added. GBP increased less than anticipated since it slowed after reaching a high of 1.2192. Although the increasing trend has not accelerated substantially, GBP may surpass 1.2200. However, the significant resistance at 1.2240 is still not likely to be overcome. Support may be found in 1.2145 and 1.2115.
Within the next three weeks: “Our analysis from yesterday (28 July, spot at 1.2165) remains valid. The GBP is anticipated to trade with an upward tilt toward 1.2240, as was indicated. As long as GBP does not drop below 1.2065 (a level that has been a “solid support” since yesterday), the upside risk is still there.
Gold futures: Potential for near-term gains
Preliminary data from CME Group show that open interest in gold futures markets surged by roughly 4K contracts on Thursday after five days of daily declines. Instead, volume reversed two consecutive daily increases and decreased by around 29.2K contracts.
Due to increased open interest, gold prices continued their upward trajectory on Thursday, allowing the trend to continue very shortly. The crucial $1,800 per ounce troy level is the next goal of note.
Silver Price Analysis: XAG/USD breaks over $20.00 to reclaim a three-week high
Before Friday’s European session, the four-day increase in the price of silver (XAG/USD) marches over $20.00. By doing so, the shiny metal builds on its upward breach of a three-month-old resistance the day before to re-enter the three-week high.
The bullish MACD indications and effective trading above the 21-DMA and the trend line breakout support XAG/USD buyers.
However, the metal’s additional upward may be constrained by May’s low and the 50-DMA, which are now around $20.45 and $20.55, respectively. The mid-June swing low at $20.90 and the $21.00 mark also serve as an upward barrier.
The possibility of seeing a run-up towards June’s high at $22.50 cannot be ruled out should the quote hold stronger over $21.00.
Pullback movements might target the $20.00 round figure in the interim before returning to the last resistance line, which was $19.35 at the time of publication.
The silver bears should exercise caution until the price exceeds the $19.00 21-DMA support line. After that, it is possible to foresee a southward run to reaffirm the annual low of $18.14, which was earlier in July.
Please click here for the Market News Updates from July 28, 2022.