ActivTrades’ Market Analysts prepared their daily commentary on traditional markets for April 22, 2020. This is not a trading advice. See details below:
FOREX
Pound traders sighed in relief, as sterling gained ground, albeit modestly, against other currencies on Wednesday morning. A string of better than expected inflation data painted a rosier image of the British economy than some were bracing for. Today’s gains for the pound follow several consecutive sessions of losses against the euro and the dollar, with the markets seeing positive undertones in the UK March inflation data. Or to put it another way, while the year-on-year inflation at 1.5% isn’t great, at least there were no nasty surprises.
GBPUSD chart
Ricardo Evangelista – Senior Analyst, ActivTrades
GOLD
It’s now been a couple of weeks in which the correlation between gold and stock has been positive, with both moving in the same direction rather than their more typical inverse relationship. Yesterday saw stocks in red with gold also losing ground, while today bullion is recovering in conjunction with markets in green. Technically the price is again approaching the key level of $1,700. There is now quite a solid support zone placed at $1,675 and a clear break above $1,700 could open space for further rallies. The resistance areas, where we would expect gold to struggle to continue its recovery, are placed at $1,710, at $1,735 and $1,747, which is the recent high reached on April 14.
Carlo Alberto De Casa – Chief analyst, ActivTrades
