Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

Gold trades at 12-week high as investors shun risk

Today’s Economic events

  • Australia Inflation expectations 3.60% vs. 3.60% previously
  • Switzerland CPI m/m -0.40% vs. -0.30%
  • Canada NHPI m/m 0.1% vs. 0.30%
  • US Weekly unemployment claims 269k vs. 287k

Coming up

  • Fed Chair Yellen testifies

Following Janet Yellen’s first day of testimony yesterday, the US Dollar remained soft and biased to the downside. Fed Chair, Janet Yellen noted that recent market developments were concerning and that they could potentially threaten the rate hike plans and put pressure on inflation. The US Congress questioned the Fed chair on negative interest rates, especially if it was legally allowed in the US. Ms. Yellen is expected to continue her testimony later this evening.

The markets at large remained in a strong risk aversion mode as the Nikkei225 closed with -2.31% losses for the third consecutive day as investors continued to push up demand for the safe-haven Yen. USDJPY remains weak, with prices falling to a new one-year low of 110.98 in today’s Trading Session. The commodity risk currencies remained choppy for the most part as AUDUSD was trading sideways with 0.03% gains for the day after falling to previous lows of 0.6984 before trading back near the open. NZDUSD is up 0.13% for the day at the time of writing, trading at 0.67 after prices dipped to session lows of 0.657.

The European Trading Session Opened with the Euro continuing to trade higher. EURUSD is trading above the 1.135 handle with 0.54% gains for the day after a decline to 1.116 yesterday during Ms. Yellen’s testimony. The single currency managed to erase all the losses from yesterday to post a new 3-week high.

Crude Oil remains bearish as WTI trades near a 12-year low of $26.25
Click To Tweet

The British Pound was trading mixed, but down -0.50% for the day as the GBPUSD is currently posting a session low just near 1.4398.

The NY trading session opened with the US Weekly Jobless Claims rising less than expected by 269k, less than the estimated 287k increase. The decline in the weekly jobless claims comes after nearly two straight weeks of larger than expected increase. The US Dollar, however, did not react much to the news.

On the commodities front, Crude Oil remains bearish as WTI trades near a 12-year low of $26.25. The declines in Crude Oil came despite yesterday’s weekly Crude Oil inventories report showing a modest decline in US Crude Oil stockpiles. Gold prices continued to enjoy a strong rally after breaking above the $1200 handle yesterday. Prices were seen trading at $1240, as Gold is up 3.5% for the day.

The post Gold trades at 12-week high as Investors Shun Risk appeared first on Orbex Forex Trading Blog.

This post first appeared on Orbex Forex Trading Blog - Forex Trading Library, please read the originial post: here

Share the post

Gold trades at 12-week high as investors shun risk


Subscribe to Orbex Forex Trading Blog - Forex Trading Library

Get updates delivered right to your inbox!

Thank you for your subscription