Morning Insights 25th February

Simon Alagbe

Analyst

Instrument: EURUSD

Technical Analysis

Bearish Preference: Sell position is envisaged if price trades below 1.21647 with take Profit at 1.21486.

Bullish Preference: Buy position is envisaged if price trades above 1.22136 with take Profit at 1.22236.

Fundamentals:    

M3 Money Supply Y/Y (EUR) 10:30 AM

Prelim GDP q/q (USD) 2:30 PM

Unemployment claims (USD) 2:30 PM

Core Durable Goods Order (USD) 2:30 PM

Comment: European Council’s intention is to reinforce solidarity but it may also highlight failings in covid vaccination rollout and difficulties in vaccine production and delivery. It may also raise issues around the financial response to the pandemic, given that the much-vaunted Recovery Fund is still to be disbursed. Stuttering vaccine and fund roll-outs have weighed on regional sentiment especially as the path for unwinding lockdown restrictions is being delayed.



Instrument: GOLD

Technical Analysis

Bearish Preference: Sell position is envisaged if price trades below 1787.76 with take Profit at 1783.13.

Bullish Preference: Buy position is envisaged if price trades above 1806.66 with take Profit at 1813.74.

Fundamentals:

Prelim GDP q/q (USD) 2:30 PM

Unemployment claims (USD) 2:30 PM

Core Durable Goods Order (USD) 2:30 PM


Comment: Gold was down on Thursday morning in Asia, with higher U.S. Treasury yields and U.S. Federal Reserve Chairman Jerome Powell’s commitment to current ultra-easy monetary policy, all putting a dent in the yellow metal’s appeal.

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