The week ahead; Debt Ceiling talks in focus
Neither the Republican or Democratic party can afford to be blamed for the unbelievable global uproar the U.S running out of money would create.
Neither the Republican or Democratic party can afford to be blamed for the unbelievable global uproar the U.S running out of money would create.
Gold has unexpectedly dropped below $2,000 for the first time since May 1 as a result of significant strength in the USD. More selling in line for Gold?
As we approach the second half of the month, trading sentiment for global markets from a theme perspective could be a stronger Dollar.
The Bank of England are set to raise UK interest rates for the 12th successive meeting – signalling to the market that more gains ahead for the British Pound?
Traders should not allow debt ceiling headlines to disguise what is really driving financial market sentiment. The main event for the week in terms of economic data releases will be Wednesday’s U.S. inflation report.
If the selling continues and focus is not diverted somewhere else, questions will soon be asked regarding whether more regional banks will fall.
From the technical outlook side of the charts Gold is clearly bullish and buyers found a fresh round of inspiration after punching through $2000 at the beginning of the week. The precious metal should be a central function of an investor portfolio and for good reason.
Gold buyers have repeatedly threatened to open the doors of $2000 and finally managed to do so on Monday.
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There are a couple of explanations as to why the USD can afford to ignore the US GDP slowdown – for now. Despite the data announcement on headline achieving anything but limiting prolonged concerns around a recession.
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