Hey Valutraders! Did you see this key level on Gold?
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I’m Brad Alexander and in this week’s Market Blast Fundamentals let’s take a look at USDJPY, the S&P 500 (US500), USDCHF, and Gold (XAUUSD).
Last week we talked about Gold breaking resistance and going higher.
Well, it did and we are now at the next key level, in the low $1900s, mostly thanks to the weakness of the USD.
Of course, even though we are getting positive signs, analysts are still expecting a recession this year so a Gold hedge has been attractive since November of last year.
The USD is tied for the weakest currency with the CHF, which is interesting considering that the CHF is normally a safe haven and we can see consolidation on this pair.
Keep in mind that the US markets are closed today so don’t expect much movement on the USD or US Indices.
Let’s see as we are now seeing bull markets on the S&P500 and the Dow Jones Industrial Average.
This tells us that many investors are ignoring recession talks and have bought the dip.
The JPY is finally showing serious strength as the BoJ governor Kuroda approaches retirement and optimism about the Japanese economy.
USDJPY is approaching this key level of support below 127.
But, watch out for his Interest Rate decision and speech on Wednesday.
Inflation is still a big global concern so we will be watching the Canadian and UK Consumer Price Index and the US Producer Price Index this week as well.
And, after 3 years off, due to COVID, we have a proper live World Economic Forum in Davos, Switzerland, so expect news and volatility.
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