The Dollar continues to retreat on a mixture of broad risk factors and US specifics following confirmation that Treasury Secretary-in-wating Yellen favours bold fiscal stimulus and market forces when it comes to the Greenback’s value, while she also intimated that increased spending should not necessarily raise the tax burden for businesses extortionately (or proportionately). The index is trying to keep tabs on the 90.500 level having declined to 90.272 and hold above support ahead of 90.000 via the 21 DMA that comes in at 90.141 today. Conversely, Sterling is back in the ascendency, and across the board as Cable sets sights on 1.3700+ again and Eur/Gbp tests bids into 0.8850 amidst reports of heavy selling interest after the cross breached 0.8900. Firmer than forecast UK inflation metrics may have prompted some upside, but the Pound’s revival appears more corrective and positional in advance of another speech from BoE Governor Bailey. In terms of the gold sentiment, we could see a rally over the rest of the week taking gold back above the $1,900 handle...
코멘트:
XAU saw decent upside to highs of USD 1,870/oz as real yields fell again and the precious metals looked past the marginal dollar strength.