FOREX
The Chinese yuan is losing ground to the US dollar, as the tension between the two countries once again rises to the top of traders’ agendas. The weekend was marked by the words of Peter Navarro, a White House trade advisor, who suggested that China had deliberately hidden the seriousness of coronavirus while at the same time ‘exporting’ it to the West. As the American presidential election campaign gathers pace it is likely that President Trump will explore tensions with China in an effort to galvanise his core support, with the yuan likely to remain under pressure as a result.
Ricardo Evangelista – Senior Analyst, ActivTrades
GOLD
Gold is skyrocketing with the price climbing to its highest in seven years. Dovish comments from the Federal Reserve and concerns about the stock market have lifted bullion. It is clear that investors are continuing to buy bullion as an insurance in case there are any further corrections on stocks. The general feeling of uncertainty and fears that stocks could be overpriced are encouraging traders to bet on further rallies for gold.
Technically the trend remains positive. The breakup of resistance at $1,730 was confirmed by both Friday’s close and in early trading of Monday morning, lifting the spot price up to $1,760.
Carlo Alberto De Casa – Chief analyst, ActivTrades
