{"id":120026,"date":"2018-01-19T10:54:48","date_gmt":"2018-01-19T15:54:48","guid":{"rendered":"http:\/\/countingpips.com\/?p=120026"},"modified":"2018-06-01T15:43:52","modified_gmt":"2018-06-01T15:43:52","slug":"sterling-dollar-and-gold-in-focus","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/01\/sterling-dollar-and-gold-in-focus\/","title":{"rendered":"Sterling, Dollar and Gold in focus"},"content":{"rendered":"
January 19, 2018<\/div>
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Article by ForexTime<\/a><\/p>\n

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Sterling bears entered the scene on Friday after British retail sales tumbled sharply in December.<\/p>\n

U.K retail sales slumped -1.5% in December as the unsavoury combination of rising inflation and tepid wage growth sapped consumer\u2019s spending power. With wage growth consistently lagging behind inflation and putting the squeeze on household incomes, concerns are likely to heighten over the sustainability of Britain\u2019s consumer-driven economic growth. It is becoming clear that Sterling\u2019s appreciation this month had nothing to do with a change of sentiment towards the UK economy but rather ongoing Dollar weakness and market optimism over a soft Brexit. With political conflict at home still a recurrent theme, and weak economic fundamentals eroding investor appetite for Sterling, the GBPUSD\u2019s upside potential could be limited.<\/p>\n

From a technical standpoint, the GBPUSD continues to follow a bullish trend on the daily charts. The breakout above 1.3850, could pave a way higher back towards 1.3920 and 1.4000, respectively. Alternatively, a breakdown below 1.3850, has the ability to trigger a decline back to 1.3700.<\/p>\n

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Dollar sulks near three year low<\/strong><\/p>\n

The Dollar was pummelled and pounded by investors on Friday thanks to growing fears of a possible U.S government shutdown. Sentiment remains bearish towards the Dollar with further downside on the cards, as political uncertainty in the United States weighs heavily on the currency.<\/p>\n

From a technical standpoint, the Dollar Index is heavily bearish on the daily charts. There have been consistently lower lows and lower highs while prices trade comfortably below the 50 Simple Moving Average.\u00a0 The 91.00 has acted as a minor resistance this week with some support found around 90.30. An intraday breakdown below 90.30 could invite a decline towards 90.00.<\/p>\n

Commodity spotlight \u2013 Gold<\/strong><\/p>\n

Gold found support on Friday in the form of Dollar weakness and market anxiety over a potential U.S government shutdown. With the Dollar struggling to gain ground and at the mercy of political uncertainty in Washington, the yellow metal is likely to remain buoyed.<\/p>\n

Taking a look at the technical picture, Gold continues to fulfil the prerequisites of a bullish trend as there have been consistently higher highs and higher lows. There is a possibility that a new higher low has been created at $1324.15 and as such could provide a foundation for bulls to elevate prices back towards $1340. A decisive breakout and weekly close above $1340 could pave a path towards $1360.<\/p>\n

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Disclaimer:\u00a0<\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime Sterling bears entered the scene on Friday after British retail sales tumbled sharply in December. U.K retail sales slumped -1.5% in December as the unsavoury combination of rising inflation and tepid wage growth sapped consumer\u2019s spending power. With wage growth consistently lagging behind inflation and putting the squeeze on household incomes, concerns […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-120026","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=120026"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120026\/revisions"}],"predecessor-version":[{"id":120030,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120026\/revisions\/120030"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=120026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=120026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=120026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}