Welcome to this week’s Market Blast.
This week we are looking at the Mexican Peso, UK Pound Sterling, Gold, and the Euro.
Fundamentals will be key for the Pound with the Conservative Party selecting 2 candidates this week and the Bank of England hinting at a rate rise once Brexit is under control.
We may hear more on this in a speech by Mark Carney this Friday.
We are seeing a hint of reversal on Cable and Sterling crosses except EURGBP.
The Daily chart shows us that we are at resistance from last autumn and support from last winter, so let’s watch for a break above or a bounce to the downside and some information on Euro policy tomorrow with Mario Draghi speaking.
The Mexican Peso is of course, another victim or beneficiary of fundamentals as we can see what happens when the White House threatens trade tariffs, then changes its mind.
From a technical perspective, watch this bullish lower trend line but don’t be surprised if we hear more from Washington about tariffs in the near future.
News on the Mexico/US trade situation brought the price of gold down a little this week but will still likely remain high based on US/China talks.
We are currently at a key level near $1325 and, if we break below, we have support at $1310 and $1300 and lower of course.
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