The British pound continues to edge higher versus other major currencies during early Tuesday trading. Sterling’s performance is defying the forecasts of most analysts, who saw the post-Brexit constraints and the economic impact of the pandemic in Britain as strong headwinds for the currency. However, the pound is finding support amidst a global rise in investor confidence, that is proving positive for risk related assets, and because of the success of the British vaccine rollout, which has placed the country ahead of its peers and in pole position for the post-pandemic economic rebound.
Despite the weakness of the greenback, bullion is showing little strength and is continuing a slow dance around $1,820/oz. This lack of energy in the rebound is due to the permanent “risk on” scenario dominating stock markets. As a result, the price was unable to rebound and attack the first significant resistance at $1,845-$1,850. We will have a bearish signal only with a decline below the support zone of $1,790, which is the low reached earlier this month. Otherwise, bullion can continue its lateral phase in the trading range between $1,790 and $1,850. A clear break through one of these levels could open space for more significant directional movements.
Carlo Alberto De Casa – Chief analyst, ActivTrades
EUROPEAN SHARES
Global optimism continued to push share markets higher on Tuesday as investors, fuelled by both fiscal and monetary support, continue to bet on economic conditions improving in the medium-term. This increased risk appetite is having a strong and opposite impact on both stock and debt markets and other safer havens. This trend is likely to accelerate with more market directionality expected today as US traders will be back to their trading desk following President Day yesterday. Meanwhile, euro-area finance ministers meet later today about the current and future economic situation while investors will also keep their focus on corporate results from Nestle, Palantir Technologies and Glencore.
Pierre Veyret– Technical analyst, ActivTrades
Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
