The fourth quarter GDP growth in the United States stood at 2.1%. This was in line with estimates and unchanged from the preliminary release. There were some upward revisions to private inventory investments, exports and federal spending. Still, the fourth quarter GDP is one of the worst readings since 2016.
Test your strategy on how the USD will fare with Orbex
Eurozone Economic Confidence Hits a 9-Month High
The survey from the European Commission on Thursday showed that the economic confidence surged to a nine-month high in February. This was the fourth consecutive monthly increase. The economic sentiment index rose to 103.5 in February after a revised 102.6 in January. Economists forecast that the index would fall to 102.6 during the month.
EURUSD is Picking Up Momentum
The currency pair is retreating after hitting the resistance level near 1.1000 region. Price action has turned bullish in the short term. Depending on how price reacts at this level, a bearish follow through might see a pullback in prices. The lower support level at 1.0892 will be tested in the near term.
Sterling Comes Under Pressure on Brexit Talks
The pound sterling is trading weaker on Thursday with declines more pronounced against the euro. The sterling fell as Britain confirmed a hard line stance on trade talks with EU. Earlier in the week, the currency fell after the new finance minister failed to announce new spending measures as widely expected.
GBPUSD Testing the Support Level
The GBPUSD currency pair is consolidating within 1.2960 and 1.2860. With the support and resistance levels formed already, a break out could be imminent. The Stochastics are well oversold which could see some momentum stalling. However, a break down below 1.2806 could spell further declines for GBPUSD.
Gold Remains Muted as Equities Continue to Slip
The precious metal did not react much, with prices staying flat on the day. This comes despite European markets falling over 3.6% on the day. The declines came as confirmed reports of coronavirus emerged from various parts of Europe. US equities are also trading lower on the back of the news.
Is XAUUSD Taking a Pause Ahead of Another Breakout?
The precious metal is currently trading flat, staying within the range of 1655 and 1631. This comes as price is pulling back after touching the 1680 handle, a seven year high. Currently, prices are testing the upper boundary. If there is a successful breakout, we expect a further move and a possible retest of the previous highs.
Test your strategy on how gold will fare with Orbex - Open your account now.
