Upside hopes for the GBP?
The British monthly GDP is announced on Friday at 09:00 MT time.
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.
Similar
Strong USD on Tuesday
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
Will the USD grow with the US labor market?
The US unemployment claims are out on Thursday at 15:30 MT time.
Latest news
ECB report is in focus
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Markets await Biden to unveil "trillions dollars"
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
USD came under selling pressure
The US dollar’s weakness offered a boost to emerging-market currencies and oil.
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