Market updates on September 5

Forex

The British pound keeps gaining on the Brexit updates. The Parliament passed the legislation both to block a hard no-deal Brexit and a general election.

GBPUSD has crossed the resistance at 1.2290. 50-day MA may become an additional barrier. If 50-day MA is broken, consider 1.2367 as the next target.

If the pair rebounds, look at 1.2216 and 1.2170.

Commodities

Gold turned down on the risk-on sentiment.

After newly imposed bilateral tariffs and the series of failed attempts to agree on the September talks, any positive sign in the Sino-American trade war improves the market sentiment. Parties announced a fresh round of talks in October. Moreover, China confirmed its willingness to achieve progress in the negotiations. As a result, risky assets surged while safe havens moved down.

Currently, XAUUSD is at highs of 2013. Thus, a small correction is obvious. However, it doesn’t mean that the fall will prolong for a long time. Supports are placed at 1536 and 1519-1525.

Unlike gold, WTI is pushed by the risk-on sentiment. Nevertheless, risks of the decline exist. Downward pressure will pull WTI to supports at 55.30 and54.25.

Crude oil inventories data is published today at 18:00 MT time. If the release shows a decline in the number of barrels, WTI will move towards the range of 56.80-57.50.