Gold revealed its vulnerability to further selling as a result of renewed vigor from the dollar and US yields. Fed members warn markets about overly optimistic rate cut bets
Forecasts
The ECB policy meeting on Thursday is the ideal place for central bank President Christine Lagarde to start to outline a rate cut timetable. Trouble is the meeting will likely follow the familiar ‘let’s wait and see the data’ script.
The Pound has been quite resilient to economic shocks, probably because they haven’t moved the dial on interest-rate views
Escalating tensions in Yemen have boosted gold’s allure going into the weekend and with short-dated US Treasury yields falling further, XAU/USD may have more room to run.
The euro’s lack of volatility underscores key horizontal levels and the potential for range trading. EU inflation and updated sentiment data unlikely to move the dial significantly
Recent bullish price action, combined with unimpressive GDP figures, provides a very uncertain landscape for the pound in big week for UK data
EUR/USD breached the psychological 1.1000 level before the weekend, but thoughts of further gains may not materialize until the New Year is in swing.