- USD GDP Q/Q falls to 2.6% for Q4 2017 but USD moves off the lows
- CAD falls back as inflation drops more than expected
- Bitcoin recaptures 11,000 after early slump
- Oil set to end the week near its highs; Aramco IPO in focus
- Technical overview of Gold
US dollar bulls were looking to this afternoon’s economic data to offer them a reprieve given the recent declines, but a larger than expected drop in growth has kept the buck under pressure and even though it has moved off its lows in the afternoon, it remains a bad week for longs. The Advanced (first of three) US GDP for Q4 came in at +2.6% against a consensus forecast of +3.0% and a prior reading of +3.2%.
Whilst the majority of the attention was on the US data, some figures from Canada caused a fairly wild ride in the Canadian dollar which swung both higher and lower following the latest CPI release. A larger than expected drop in this reading has weighed on the Loonie on the whole and the CADJPY pair is ending the week at a potentially key level.
Bitcoin dropped lower once more this morning as news that the UK would increase their scrutiny of the cryptocurrency as well as reports of a largescale fraud saw price fall lower by more than 5%. As the day wore on, the market recovered somewhat and on the European close was trading back above the 11,000 handle once more.
It’s been a pretty choppy week for oil prices but they are looking to end it on a good note with the markets trading near their highest level. The incredible rally of around 60% in the past 7 months has been largely due to production cuts from both OPEC and non-OPEC (Russia) members. Saudi Arabia in particular could be sent to have a vested interest in a higher price for crude with the IPO of Saudi Aramco looming large.
Gold is set for its highest weekly close in 18 months with price making a substantial break higher in the past few days. The market has since pulled back from its highest levels but it remains firmly higher on the week and it could now be seen to be a good time to look at the technicals of the market and assess what could happen going forward.
This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.
Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.