Bullet Report: GOLD Surges Amid USD Selloff

Despite an empty financial calendar yesterday, the market was extremely active with the main theme being the selloff of the USD and the surge of German DAX along with regional bourses. In essence, almost all the gains post the NFP last week were evaporated in swift fashion catching many traders by surprise. Today, the financial calendar is also light, with US retail Sales on Friday being the only noteworthy economic indicator to watch.

Currencies: USD was sold off in relative quiet markets yesterday as traders and the market remain unconvinced that the FED will proceed with an interest rate hike this year. Fed fund futures are pricing in only 42.7% chance of a hike by December, staying below 50% level. EURUSD reached 1.1155 while GBPUSD recovered from intraday lows of 1.2960 to 1.3090. Meanwhile USDJPY dropped once again to 101.15 from over 102. Strong gains were also noticed in the AUDUSD which posted 3 month highs over 0.77.

Stocks: The main story yesterday was once again the US stocks and particularly Nasdaq which briefly posted new all-time highs. The main stock market outperformer was the DAX though which rose 2.5% to reach post Brexit highs after very good corporate earnings in Germany, mostly from automakers. France’s CAC 40 PX1, +1.19% rose 1.2% to 4,468.07 and Italy’s FTSE MIBI945, picked up 0.3% at 16,796.14.

Oil and Gold: Oil prices are trading lower by $1 after hitting $43.5 highs 2 days ago as traders are concerned about a global supply glut. Oil flipped between gains and losses in a choppy session, but were dragged lower around midday after the U.S. Energy Information Administration, in its monthly short-term energy outlook, said it expects U.S. crude oil production to decline. Gold prices reached $1355 from $1330 yesterday on the back of the USD selloff.

The post Bullet Report: GOLD Surges Amid USD Selloff appeared first on Forex.Info.

Source:: Bullet Report: GOLD Surges Amid USD Selloff

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