Growth matters more than central banks
The only positive I can think of for the Euro or Sterling, in a world where growth expectations are the biggest driver of exchange rates, is that expectations about UK and Eurozone growth are already dire relative to the US. That ought to be enough to prevent a sharp collapse by EUR/USD or GBP/USD (parity for EUR/USD, or GBP/USD down to around 1.15 seems unlikely) but GBP/USD could get to 1.20, and EUR/USD can easily trade below 1.05 easily if we don’t get any positive surprises from the real economy data in Europe soon.
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EUR/USD recovers above 1.0650 as US Dollar retreats on China optimism
EUR/USD recovers above 1.0650 as US Dollar retreats on China optimism
EUR/USD is trading above 1.0650, recovering from the dovish ECB hike inflicted wounds in the European morning on Friday. Optimism surrounding China’s stimulus measures and strong economic data is weighing on the safe-haven US Dollar, supporting the pair.
EUR/USD News
GBP/USD sticks to modest recovery gains around 1.2430
GBP/USD sticks to modest recovery gains around 1.2430
GBP/USD is posting gains near 1.2430 in early Europe on Friday, moving away from a multi-month low. A combination of factors prompts some USD profit-taking, which lends support to the pair. Diminishing odds for more BoE rate hikes might keep a lid on further gains.
GBP/USD News
Gold extends gains toward $1,920, focus on US economic data
Gold extends gains toward $1,920, focus on US economic data
Gold price extends gains on the second day, trading higher near $1,920 per troy ounce during the early trading hours of the European session on Friday. The pair is receiving upward support, likely attributed to a slight correction in the USD.
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