13.09.2019: Will US statistics curb dollar’s fall? (EUR, GBP, CHF, GOLD)


Yesterday, the European Central Bank held
a monetary policy meeting, and traders are waiting for three more important rate-setting
events to take place in the coming week. These will be the meetings of the Federal
Reserve, the Bank of England, and the Bank of Japan. Expectations of their results are having a
negative impact on the US dollar. Besides, the appetite for risk increased amid
signs of possible resolution of the US-China trade conflict which also put the American
currency under pressure. The euro benefited from the dollar’s weakness. Investors are assessing the effect of the
ECB Governing Council meeting where the regulator took a number of stimulus measures. The euro approached the psychological level
of 1.1100 against the American currency. A break above this mark may result in a further
rise to the next resistance level at 1.1150. Meanwhile, the GBP/USD pair has finally broken
out of the trading range and advanced above 1.2400 for the first time since July 26. The pound sterling managed to gain ground
amid the speculation about intentions of the European Union to extend the deadline for
Brexit. Today the USD/CHF pair declined towards the
lower boundary of the weekly trading range near 0.9870. The bearish trend has been persisting for
the second session in a row. It is still unclear whether the current pullback
will prompt dollar bulls to open buy deals at a cheaper price or the franc will rise
further. At the same time, gold prices recovered and
rose above the key psychological level of 1,500 dollars per ounce. The precious metal is hovering above the weekly
highs that were reached in the previous trading session. Yesterday gold approached the daily peak at
1,524, reacting to the ECB meeting results. At the same time, the commodity lost momentum
shortly after that amid positive news about the US-China trade war. Subsequently, gold suffered active sell-off
at highs. The news provided support to the US Treasuries
yields and put gold under pressure, but the precious metal recovered amid the weak US
dollar. The US retail sale data is scheduled for release. Meanwhile, we continue to monitor the developments
on the financial market. See you on our channel!

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