GBPUSD (Pound) remains heightened
The GBPUSD (Pound) looks to hang onto a three-month high as traders shrug off the latest announcements coming out of the White House. The UK currency has defied expectations after President Trump said he’s planning to roll out tough tariffs on all imports into the US, which was looking to propel the dollar. It seems this has been ignored as prices search for the next peak towards 1.2800. Any signs of exhaustion will lead to a test at 1.2580 and then 1.2400.
XAUUSD the correction begins
Gold fell through the 2900 barrier, which opened the door to more multi-week lows. The American President remains in the news regarding market fluctuations, as he has revived tariff-related concerns and dented risk aversion. With the Fed’s next meeting a few weeks away, it gives plenty of time for more speculation on the next direction for gold. This could be amplified should more dovish comments come out of the central bank. The price is attempting a rebound but will need to clear 2900 first, with 2850 the new support.
SPX 500 falls from peak
The S&P looks to bounce back after a forgettable loss last week. With all the talk on the Fed’s next move, those who expect a rate cut in the first half of the year will be disappointed. This could mean a turnaround in fortunes for the under-pressure index and yet another possible record high as prices look for firm support at 5900, especially if the NFP number ticks higher. Any chance of a move higher needs a break at the psychological level of 6000 before a fresh peak can be tested.
