In the Markets Today we have seen some consolidating in many pairs and even in gold after a bounce in US dollar as global fears rise surrounding restrictions due to Covid. EUR/USD, GBP/USD, XAU/USD, AUD/USD all suffer losses. But why such a retreat after several days of gains? Whilst the safe haven dollar is gaining ground growing concerns about travel to Europe, Britain’s lockdown into summer and Biden coronavirus plan being considered unaspiring people are turning to the greenback to secure their gains over the past few days.
Australian Retails Sales figures came in lower the expected falling to 4.2% for December.
The European Central Bank has left its policy unchanged but it came with a warning as growth in manufacturing and struggling services sector cause divide. The risk outlook for both sectors is beginning to dwindle but only minimally for service.
GBP/USD continues its downslide as it extends beyond 1.3700 after UK Retail Sales fail to meet expectations at only 0.3% for December.
Gold bears take charge as we see the yellow metal pullback further to $1,850. With concerns whether the fiscal stimulus package could help stimulate the economic recovery and the UK contemplating full border closures we should see the losses continue into the weekend. Consider $1876 as your upside target with $1859 as your alternative