FOREX
The Pound is trading higher versus all other major currencies during Thursday morning. With today’s gains sterling recovered all the ground lost to the dollar during March, when coronavirus related panic-selling saw the British currency sink versus the, then, safe haven greenback. The latest gains were triggered by the release of the Bank of England’s policy statement, which reveals the bank’s intention to keep monetary policy unchanged due to a more positive assessment of the impact of the lockdown to the UK economy than was previously expected.
EURUSD chart
Ricardo Evangelista – Senior Analyst, ActivTrades
GOLD
Gold price continues to skyrocket as demand for the precious metal surges. The main thrust is coming from the investment sector, after ETF gold demand reached an historical high. Technically, we are in a new and not yet explored scenario for gold, which is reflecting the huge hunger of investors. While demand from the jewellery sector is muted by the Covid crisis, we are witnessing an euphoric phase, where investors are not considering technical indicators or fundamentals as they are simply focused on increasing their positions on gold, The prevailing uncertainty along with growing expectations for further dovish actions by central banks is likely to fuel this phase.
Carlo Alberto De Casa – Chief analyst, ActivTrades
