Morning Insights 12th April

Simon Alagbe

Analyst


Instrument: GOLD

Technical Analysis

Bullish Preference: Buy position is envisaged if price trades above  1746.64 with take profit at price 1751.52.

Bearish Preference: Sell position is envisaged if price trades below price 1736.53 with take profit at price 1732.05.

Fundamentals:   

10-y Bond Auction (US) 6:01 PM

Comment: Gold was down on Friday morning in Asia but was hovering close to a more-than-one-month peak reached during the previous session. An unpleasant surprise jump in the number of U.S. jobless claims also pushed gold towards a weekly gain of over 1%. Currently, Gold is trading below the 22 EMA on the H1 timeframe heading towards the next weak resistance within the region of 1749.52. However, it’s uncertain if this precious metal will break the verified resistance at the 1760 region on the D1 timeframe. 



Instrument: GBPUSD

Technical Analysis

Bullish Preference: Buy position is envisaged if price trades above  1.37566 with take profit at price 1.37749.

Bearish Preference: Sell position is envisaged if price trades below price 1.37393 with take profit at price 1.37261.

Fundamentals:

10-y Bond Auction (US) 6:01 PM

Comment: The UK has vaccinated nearly 30 million people (as we write) with a first dose, while over 2.5 million people have had two doses of a Covid-19 vaccination. This impressive achievement should translate to a quicker-than-expected re-opening of the UK economy, potentially powering robust economic growth and boosting job prospects. The latest official employment figures will have pleased the government with the unemployment rate falling down to 5%, while the employment rate in the three months to January 2021 was estimated at 75%, marginally lower than the prior quarter. The UK economy is expected to grow by 4.5% this year, according to the latest IMF projections, and this may be upgraded due to the speed and success of the vaccination roll-out along with the substantial fiscal and monetary policies already in place.

 

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