09.08.2019: EUR stuck in narrow range (EUR, USD, GBP, GOLD)


Traders express pessimistic sentiment on the pound sterling. The British currency is falling again after a short respite. The single currency remains sensitive to the news from the US. The euro/dollar pair remained unchanged trading in the same narrow range. Traders are expecting the pair to surge up after the publication of the US producer price index. The US dollar may benefit from the rowth of the indicator as it forces the Fed to ease its monetary policy. The euro/dollar pair has stopped its decline at 1.1180. At the European session, its quotes were pushing higher. Additionally, the pair is likely to resume its growth in the long-term as Trump is doing everything possible to find a way to weaken the greenback. Traders, however, are more interested in China’s currency trajectory. If investors start actively buying safe-haven assets ahead of the weekend, the euro may inch up. The pound/dollar pair tumbled again after its early gains as expected. Thus, the sellers are now controlling the pair. Traders remain concerned over Boris Johnson’s decision on Brexit. The Brexit deadline is approaching but the UK macroeconomic fundamentals are far from perfect. The country’s GDP unexpected drop in the second quarter weighed on the pound sterling. As a result, quotes of the pound/dollar pair once again sank below the 1.20854 level. Gold is trading in the green zone as traders still tend to buy this safe-haven asset due to ongoing trade wars. Besides, geopolitical risks and the monetary policies of the world’s major regulators also trigger the growth of gold quotes. Today one ounce of the yellow metal costs $1,515. Gold prices have soared almost by 7% since the beginning of this month and by 17% during this year. Investors anticipate gold to rise to $1,600 per ounce. This scenario is quite likely given extremely turbulent political and economic background.

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