{"id":153436,"date":"2019-08-13T10:41:59","date_gmt":"2019-08-13T14:41:59","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=153436"},"modified":"2019-08-13T10:41:59","modified_gmt":"2019-08-13T14:41:59","slug":"gold-rallies-as-equities-fall","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/08\/gold-rallies-as-equities-fall\/","title":{"rendered":"Gold Rallies As Equities Fall"},"content":{"rendered":"
August 13, 2019<\/div>
\r\n<\/div><\/div>

By <\/strong>Orbex<\/strong><\/a><\/p>\n

US CPI In Focus<\/strong><\/h2>\n

The US dollar has had a subdued start to the day on Tuesday. The USD index is continuing to stagnate below the 97.68 level.\u00a0Looking ahead to today, however, there is the potential for volatility with the July CPI print due over today\u2019s US session.<\/strong>\u00a0A weak reading could cause a sharp move lower in USD. This may boost expectations of further easing from the Fed, while a better print could see price back above the 97.68 level.<\/p>\n

EUR Rallies on USD Weakness<\/strong><\/h2>\n

EURUSD has been a little higher over the session so far on Tuesday,\u00a0benefiting from USD weakness.\u00a0<\/strong><\/a>Price is once again looking to test the 1.1217 level which capped upside all of last week.\u00a0Political events in Italy could impact EUR in the short term with the Italian government due to a Vote of no Confidence which<\/strong>\u00a0has been called, the date of which will be set later today. This could result in a technocratic government being put in place, or snap elections if the vote is passed.<\/p>\n

GBP Weighed Down<\/strong><\/h2>\n

GBPUSD is trading in the green so far today also, though only slightly,\u00a0With fears over the prospect of a no-deal Brexit continue to dominate GBP flows, price remains subdued near the 1.1987 2017 lows.<\/strong>Earnings and employment data yesterday was better than expected though saw only a mild bounce given the heavy negative outlook for GBP.<\/p>\n

Equities Under Pressure Again<\/strong><\/h2>\n

Risk assets continue to trade under pressure today. SPX500 is continuing its decline from above the 2908.55 level.<\/strong>\u00a0With price having failed to hold back above the level, there is the risk of a fresh run down to the 2798.34 level again this week. For now, it seems that fears over the escalating trade war are taking priority over expectations of further central bank easing.<\/p>\n

Gold Explodes<\/strong><\/h2>\n

Safe havens have had a strong session<\/a>\u00a0so far with both JPY and gold trading higher as risk aversion takes hold once again.<\/strong>\u00a0XAUUSD has now broken above the major 1522.75 resistance which had not been tested since breaking in 2013. USDJPY trades 105.15. Price is fighting to hold above the current 2019 lows of 105.03 for now. A deeper push in equities over the week will likely see this level give way.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

Crude Rally Capped<\/strong><\/h2>\n

Oil prices have been a little lower over the session so far in the wake of the wave of risk aversion weeping markets. Crude has fallen back below the 54.90 level which was tested overnight.\u00a0Concerns over the demand outlook, in the face of the growing US\/China trade war, are keeping crude capped for now. Looking ahead today, traders are waiting on the release of the weekly API report.<\/strong><\/p>\n

AUD Up, CAD Down<\/strong><\/h2>\n

USDCAD has been higher today, despite a weaker USD, as weakness in oil, and the general risk-off tone of the day weighs on CAD.<\/strong>\u00a0Price is continuing to rally off the recent 1.3207 lows. However, any weakness in US CPI today could put an end to the rally in the short term.<\/p>\n

AUDUSD has been a little higher today, interestingly. While CAD has traded lower on oil weakness, AUD has managed to hold on. Currently, it\u2019s fighting to get back above the broken .6760 level.\u00a0The NAB business confidence survey, released overnight, improved to 4 from 2 over July. This might be offering some support so far today.<\/strong><\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex US CPI In Focus The US dollar has had a subdued start to the day on Tuesday. The USD index is continuing to stagnate below the 97.68 level.\u00a0Looking ahead to today, however, there is the potential for volatility with the July CPI print due over today\u2019s US session.\u00a0A weak reading could cause a […]<\/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-153436","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/153436","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=153436"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/153436\/revisions"}],"predecessor-version":[{"id":153444,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/153436\/revisions\/153444"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=153436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=153436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=153436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}