The current trend for gold prices shows an increase within a specific range. It appears that market trends are shifting towards macroeconomic factors as a primary focus. The decrease in volatility suggests a preference for range trading.
The performance of the British Pound is subject to the actions of its trading counterparts in a week with limited data releases. Despite a recent retreat, the GBP/USD pair remains under pressure. The sharp decline in GBP/AUD increases the likelihood of a more significant setback in the immediate future. Efforts to surpass critical resistance levels have proved challenging for GBP/JPY.
Asian stocks are expected to open positively, largely tracking the positive handover from Wall Street. The Nasdaq Golden Dragon China Index surged due to investors’ anticipation for more supportive measures from Chinese authorities. The economic calendar today will bring focus to Australia’s 1Q GDP growth rate and China’s May trade numbers. The AUD/JPY is back to retest the upper trendline of its rising channel pattern, while the USD/CAD is back to retest an upward trendline. A 25 basis-point move at the upcoming BoC meeting may be deemed a hawkish surprise and be supportive of the CAD.
The market for crude oil experienced a sharp increase in response to the recent cuts made by OPEC+. However, this was followed by a subsequent decrease and the price has since stabilized within its previous range. At present, it seems that inventory data is the key factor influencing market activity.