The pound is gaining ground on both the dollar and the euro during early Tuesday trading, after the British Prime Minister confirmed that from July 19th all restrictions on economic activity will be lifted in the UK, with the country becoming the first major economy to completely open up and accept the inherent risks. Other nations will surely be watching how the British experiment unfolds, but in the meantime the pound is likely to remain supported, with the economy expected to return to pre-pandemic levels sooner than previously expected.
Gold keeps on edging higher for the fifth trading session in a row as investors continue their rotation to safer assets amid rising global uncertainty. The situation looks reassuring for bull traders from a technical perspective after the price achieved a new high above $1,800, ending the short-term consolidation. Both moving averages are now rising following a bullish cross while the DMI shows a growing bullish pressure inside an increasingly directional movement. However, the market will have to edge above $1,815 to unlock further bullish openings at first $1,834 and upwards to $1,854.
Shares drifted lower shortly after the European open on Tuesday, following a mixed Asian trading session, amid increasing uncertainty towards riskier assets. Of course, all eyes are on energy shares this week after the UAE blocked the OPEC deal in its discussion with Saudi Arabia. This breakdown in talks is preventing any increase in oil output and driving oil markets and oil-related stocks much higher today. Cyclical values, miners, automakers and airlines are among the top movers today, but traders remain cautious as talks are set to continue between the OPEC members. Meanwhile, investors will pay attention to today’s new batch of macro data with the German ZEW Economic sentiment in the morning and the US ISM Non-Manufacturing PMI later this afternoon.
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.
