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Gold Prices Soften From Seven-Year-Highs, Bounce from Support

Gold prices have put in a strong bounce from support over the past two days, and this follows a week of retracement after the precious metal had pushed up to yet another fresh seven-year-high. As looked at last week, just as Gold prices were setting that fresh high-watermark, FOMC Chair Jerome Powell communicating to markets that there was ‘no limit’ to what the Fed could do with the lending programs available helped to fire Gold prices higher. This helped the yellow metal to test above the $1750/oz level for the first time since 2012 and stocks have enjoyed a significant rally, as well.

Since then, however, that bullish trend in Gold had calmed and price action has pushed down towards the second zone of support looked at in that article last week. Yesterday saw price action tip-toe down to the 1692 level, but bulls came in a little early to help set a fresh two-week-low at 1693.55. Prices have since bounced but there’s a very apropos question of whether buyers are yet ready to rekindle that bullish trend or whether a continued retracement is waiting in the wings. For context, we must look at the bigger picture.

Gold Price Outlook: XAU Overbought as Cycles Drive the Bullish Trend Gold prices remain perched near seven-year-highs but long-term overbought readings may hinder short-term bullish continuation.

Euro Forecast: EUR/USD Outlook Positive, ECB May Boost Asset Purchases

Fundamental Euro Forecast: Bullish

The European Central Bank’s policy-setting Governing Council will likely increase the size of its €750 billion Pandemic Emergency Purchase Program Thursday.
That may well strengthen the Euro by raising hopes that both the ECB and Eurozone governments are now moving together to fight the economic damage caused by Covid-19.

Euro price outlook positive

Thursday’s meeting of the European Central Bank’s Governing Council will likely end with Eurozone interest rates being left unchanged. However, chances are high that the ECB will boost still further its spending to counter the economic impact on the Eurozone of the coronavirus pandemic, probably by boosting the €750 billion Pandemic Emergency Purchase Program (PEPP) it launched in mid-March.

Coupled with last week’s proposal by the European Commission to fight the downturn with €500 billion in grants to the member states hit hardest by the outbreak and a further €250 billion in loans, an expansion of the PEPP should convince investors that the various EU institutions are now pulling together, and give the Euro a consequent boost.

Euro Forecast: EUR/USD Outlook Positive, ECB May Boost Asset Purchases The European Central Bank will likely boost its Pandemic Emergency Purchase Program at Thursday’s meeting of its Governing Council; a move that could give the Euro a lift.

Japanese Yen Pressured as Big Problems Seem to Fade
Dec 26, 2019 10:00 AM +00:00
David Cottle, Analyst

The Japanese Yen sails into a new quarter and indeed a new year with some clear difficulties, at least if you’d like to be a bull. Will they last?Well, the currency’s vaunted ‘haven status’ has seen it increasingly out of favor as at least two of the global economy’s key concerns seem to have become less urgent. Front and center, of course, is the trade situation between China and the United States. The twists and turns of tariff impositions, threats of more and, rarer, signs of rapprochement, have kept investors on their toes all year.

Japanese Yen Pressured as Big Problems Seem to Fade The Japanese Yen sails into a new quarter and indeed a new year with some clear difficulties, at least if you’d like to be a bull. Will they last?

British Pound Fundamental Forecast -Bearish

British Pound rose as rosy UK data cooled BoE easing speculation
GBP/USD may focus to the downside ahead if the central bank cuts
Fed may boost US Dollar if it commits to unwinding repo operations

British Pound, Brexit, Bank of England -Recap

The British Pound spent most of last week focusing on fundamental developments impacting monetary policy expectations rather than on sentiment and Brexit. As widely anticipated, UK Prime Minister Boris Johnson’s commanding Conservative majority saw his EU withdrawal bill pass swiftly through Parliament. That was no surprise, but what did catch traders’ attention was a series of uplifting local economic data.

A rosy jobs report and the highest business confidence since April 2014 poured cold water on near-term Bank of England (BoE) rate cut expectations. By the end of Thursday, the British Pound was outperforming against its major counterparts such as the US Dollar, Euro and Australian Dollar. This momentum may be at risk in the week ahead.

British Pound May Yet Fall on Brexit, BoE and Fed Are Risks The British Pound may fall as Brexit commences, but will the Bank of England cut rates? The US Dollar could rise if the Fed spooks markets with plans to unwind repo operations.

Nasdaq 100 Price Forecast:

The S&P 500 reclaimed the psychologically significant 3,000 mark on Tuesday
Meanwhile, the Nasdaq 100 continues to edge closer to the all-time highs it saw in February
After trading within an ascending channel since mid-April, a break would be a significant development

Nasdaq 100 Price Outlook: Trading Range Remains Intact, Will it Break?

The S&P 500 crossed the 3,000 mark on Tuesday, trading above the level for the first time since March 6 and achieving a significant technical benchmark. That said, the Nasdaq 100 stands in a class of its own as the tech-heavy index looks to retake all-time highs which exist just a few hundred points from the current price. Thus, it seems the Nasdaq 100 is in a strong position to make an attempt at the prior peaks in the weeks ahead as long as the ascending channel remains intact.

Nasdaq 100 Price Outlook: Trading Range Remains Intact, Will it Break? The Nasdaq 100 has long been the leader of the major US indices and may look to continue its melt higher as long as the ascending channel remains intact. What will create a break?

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Dollar Rally Fades Away Before Yellen as European Stocks Retreat....

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