British Pound Trading Outlook

The Pound is under pressure as disclosed in this 19 April British Pound Trading Outlook! The British currency has been under the spotlight for the past 48 hours but the news from the labor market and inflation fronts has not been good sending Sterling sharply lower.

19 April, ADS Securities – Today the Retail Sales figures will complete the trifecta of data from the UK: should consumer spending print lower as expected it could threaten the chances for a Bank of England rate hike in May weighing down on its medium-term outlook.

19 April British Pound Trading Outlook

From what we’ve seen from this week’s data the risk for the Pound is to the downside. Inflation slowed down last month to 0.1% and the labor market report indicated that wage growth remained steady; both these indicators suggest that consumers might remain conservative and spend less hinting at a soft report today. 

The short-term outlook for the Pound is pointing lower and the price action over the past 24 hours has taken the currency from the 1.44 area down to the 1.42 floor. A bearish reading in the Retail Sales report will drive prices lower towards the 1.41 base which would cancel most of the rally we’ve seen since the beginning of the month.

USDJPY Trading Outlook

Among the rest of the majors, Dollar/Yen continues its move to the upside holding firmly above the 107 mark. News that US President Trump and Japanese Prime Minister Abe agreed to start discussions on a fair trade deal further dampens the global risks. 

Safe haven instruments are expected to be put to the test with the Yen remaining under pressure against the greenback but its Gold that should also attract investors’ attention.

Gold Fundamental Analysis

The yellow metal is trading just shy of the $1,350 area enjoying a nice rally since the beginning of the week but further easing of geopolitical risks could easily reverse these gains.

The economic calendar is mostly empty of US-related news to spark a Dollar rally that could threaten Gold’s upside but technical studies suggest that there’s limited momentum underpinning its current uptrend. A break below the $1,348 support would expose the downside for Gold and the next stop will be the $1,340 area.

Asian Equity Markets

On the equities’ side, Asian bourses are trading above water this morning after a mostly positive day for the US stock markets. The European futures are trending sideways though with the FTSE 100 and the CAC 40 expected to open slightly higher but the German DAX is pointing marginally lower.

The similar outlook for the US equity markets with the Dow Jones and the S&P futures trading sideways at this time. US Treasury yields have climbed above the 2.85% mark once again which would explain why stock traders are opting for a cautious stance towards the end of the week.

ADS Securities Risk Disclaimer

This article was provided by analysts of ADS Securities.

Trading foreign exchange, foreign exchange options, foreign exchange forwards, contracts for difference, bullion and other over-the-counter products carries a high level of risk. All opinions, news, analysis, prices or other information contained in this communication are provided as general market commentary. It does not constitute investment advice. Nor a solicitation or recommendation for you to buy or sell any over-the-counter product or another financial instrument.

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