07.08.2019: EUR retreats, GBP remains flat (EUR, USD, GBP, GOLD)

Market participants are awaiting another key rate cut by the Fed. Thus, it refrains them from the massive sell-off of the euro/dollar pair. The pound sterling is hovering at its lows while gold is about to hit a new high. Investors were surprised by the sudden growth of the euro/dollar pair as there were no positive macroeconomic data to support its upward movement. Meanwhile, the market fixed profits and developed new strategies pricing in the escalation of US-China trade conflict. At the European session, the euro dipped. It was trading at 1.1186. Overall, traders remain cautious as the US regulator is likely to reduce its key rate due to trade wars. China’s decision to weaken the yuan has increased the degree of uncertainty about global economic prospects. Demand for safe-haven assets surged up. Gold overcame another psychological level. The precious metal is trading at $1501 per ounce. The Swiss franc gained ground. It forced the Bank of Switzerland to intervene to trim the rising currency. As a result, the USD/CHF pair was edging down at the European session. The pound attempts to get a correction trading near 1.2137. The fact that the greenback is not rising notably at the moment provides support to the British currency. However, the pound/dollar pair remains under pressure. Traders are worried as another Brexit deadline is looming, while British Prime Minister Boris Johnson has not made any progress in negotiations with Brussels. Thus, there are more questions than answers. Against this background, the pound is stuck at the lows with a chance of further decline.

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