ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for October 8, 2019. See details below:
FOREX/BREXIT
Trading at around $1.23, the Pound is holding on to yesterday’s losses. Information, allegedly leaked from the British Prime Minister’s office, points at the realization within Boris Johnson’s camp that the current negotiations with the EU will break down and there will be a new delay to the exit date, which will be preceded by a new election According to these reports, the Conservative Party’s election campaign strategy will be based around promising a swift exit from the EU. It is therefore no surprise that the Pound is not moving much as after more than three years, there’s still no clarity on what the outcome for the Brexit process will be. Only a new parliamentary election, perhaps even a referendum, will be able to untie the Brexit knot. Until then Sterling is likely to remain within the current range.
Ricardo Evangelista – Senior Analyst, ActivTrades
GOLD
Gold is trying once again to hold the support level and psychological threshold of $1,500. Uncertainty on stock markets and the weak US data seen in the last ten days are increasing the chances of another rate cut later this month. We now have more than 70% of investors betting on it and this could be supportive for the gold price.
In this scenario, gold price is dancing around the $1,500 level, clearly waiting for other market movers while the challenge between the bearish short-term trend and the bullish long-term trend continues.
Carlo Alberto De Casa – Chief analyst, ActivTrades