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Forex

The Week In Retrospect: US Dollar Outperform in The Forex Market

Samson Ononeme | Feb. 15, 2019
The Week In Retrospect: US Dollar Outperform in The Forex Market

The US Dollar ended this week as the strongest currency, mainly due to weakness elsewhere. Worries of a global slowdown, Brexit uncertainties or even recession, sent Euro and British pound sharply lower.

February 15, 2019 | AtoZ Markets - Looking at this week in retrospect, the euro currency came under heavy selling pressure, falling to a fresh 2019 trading lows. This was because investors were apprehensive about the effect the United Kingdom’s upcoming departure from the European Union may have on the already weakened eurozone economy.

In addition, disappointing monthly eurozone Industrial Production data as well as softer German fourth-quarter GDP numbers drove the EURUSD pair closer to the 1.1200 level.

However, while the euro continued under increasing pressure, the US dollar outperformed all major currencies this week.

British Pound Remained Under Selling Pressure

The British pound, like the Euro remained under selling pressure against the US Dollar this week after the UK posted weaker than expected GDP and CPI inflation data.

Monthly UK GDP contracted -0.4% month-on-month, while fourth-quarter UK GDP expanded just 0.2%, missing the 0.6% expectations from most economists.

Meanwhile, UK CPI also tumbled -0.8% during January, as Brexit uncertainty continued to impact negatively consumer prices alongside the recent decline in crude oil prices. Therefore, the GBPUSD pair dropped below the 1.2800 level and was further weakened by a renewed bid-tone in the US dollar.

Gold Price Outlook

The price of Gold has stayed a bit stabilized this week oscillating between 1315 and 1308. Price was bearish on Monday having a run toward 1300 handle. From 1302 however, price rallied upside yesterday to retest 1315 but the momentum was not strong enough to continue the bullish trend.

Currently, price is hanged between 1315 and 1302 important intraday price levels. A dip below 1300 is still very much likely to happen before the trend continue upside.

Since the beginning of this month, when Gold turned from the multi-months top of 1326, we have monitored the current dip. Price pattern is corrective, indicative of a continued bullish run.

Crude Oil Price Gained Strong Support

Crude oil prices received a strong boost this week as the Kingdom of Saudi Arabia cut oil production levels by more than 500,000 barrels which was above the expectations analysts. This however, pulled Brent crude and WTI oil prices sharply higher during the week.

Moreover, another contributing factor was the rising optimism over Sino-US trade talks that would be extended past the March 1st truce deadline. This also has helped to support commodity prices this week.

Think we missed something? Let us know in the comments section below.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.