ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for October 25, 2019. See details below:
FOREX/BREXIT
For the second consecutive day, the pound is falling against other currencies and currently trades at $1.2830. Having touched $1.30 earlier in the week, this represents a fall of more than 1.5%. The latest political twist keeping sterling under pressure has a touch of surrealism about it: Boris Johnson is asking for an early election, for which he’ll need the support of Labour MPs; Jeremy Corbyn, the Labour leader, said he will support an early election, but only if the EU has granted a Brexit extension and no deal is off the table. However, the EU will only grant a new extension if the British side has a clearly defined plan. There is an absurdity about the situation and the markets are reacting by once again walking away from the pound.
Ricardo Evangelista – Senior Analyst, ActivTrades
GOLD
Gold recovered to $1,500 just in time for the long weekend of Diwali celebrations. A dovish Mario Draghi in his final meeting and growing expectation for a rate cut by the FOMC next week are pulling up the price of bullion price. The recent rebound was also important from a technical point of view, as this recovery is breaking up the negative trendline of the last few weeks. The key level of $1,500 is now a support, while the first resistance level is placed at $1,520.
Carlo Alberto De Casa – Chief analyst, ActivTrades