26.08.2019: EUR bulls retreating after leap (EUR, USD, GBP, GOLD)


Financial markets are closely watching the latest twist in the trade conflict between the US and China. Traders are alert to any news on the trade talks. Meanwhile, demand for gold is increasing. The most popular currency pair has pulled back after a spike. The euro bulls set about active trading since early Monday. However, they failed to keep the market under control. The euro/dollar pair retreated to 1.1117 following an earlier advance. Traders are evaluating statistics from the eurozone. Business sentiment among German investors weakened in August. The business climate index slumped to the lowest level in seven years, thus being otherevidence of a slowdown in the largest eurozone’s economy. The pound sterling took advantage of the greenback’s decline at the end of the last week. So, the sterling could recover to the level of July 29. Today the British currency resumes the bear trend. The pound/dollar pair settled down at 1.2244. On Sunday, UK Prime Minister Boris Johnson again advocated for the hard Brexit at the G7 summit. He defended this scenario as he finds it the most feasible and beneficial. Indeed, London will not have to pay a divorce bill to the EU authorities. Market have already responded to the news of recent days. At the moment, safe haven assets are making correction. The Swiss franc is losing ground versus the US dollar. However, gold has reached the highest level in six years. Today, the precious metal is still extending gains trading at near 1,540 dollars per ounce. Gold has positive prospects for the short term as investors are still cautious amid risks of the trade war. The next target level for gold bulls is seen at 1,555 dollars. The most important report today will be data on durable goods orders from the US. Besides, traders will take notice of the national activity index for July from the Federal Reserve Bank of Chicago.

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