Gold Tests $2k, GBP/USD, EUR/USD Pop, USD Sags

Upcoming markets: $2,000 gold test, GBP/USD, EUR/USD pop, USD decline

Markets remain risk-on, with US stock market ranges hitting multi-month highs. The VIX “fear gauge” is at its lowest level since early 2020, and has fallen more than 46% since its soaring high in late October. There is growing belief that interest rates around the world have peaked, and interest rates could rise further in the coming months.

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VIX daily chart

Despite a slight rise in U.S. Treasury yields, the U.S. dollar remains underdogs and is on the verge of hitting multi-month lows. There will be a huge sale of 2-, 5- and 7-year U.S. Treasuries next week, with the market looking for higher yields before $148 billion in notes hit the market.

Next week’s calendar will feature several influential economic indicators, with US GDP, the eurozone, and US inflation standing out. Federal Reserve Chairman Jerome Powell will also speak over the weekend.

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Technical and fundamental forecasts – including November 27th

British pound (GBP) weekly forecast: data and monetary policy align, but questions remain

The British pound has returned to its highest level against the US dollar since early September. Granted, above $1.25 it probably looks surprisingly comfortable.It’s about two pillars: financial support and, rarely these days, economic data.

Gold (XAU/USD) and silver (XAG/USD) remain high as oil prices aim to recover

Gold and silver prices remained strong this week as buyers sustained both metals, with support also from the weak US dollar. Both gold and silver threatened to fall this week, but buyers kept prices stable for much of the shortened trading week. But looking at gold, failure to accept above $2,000 an ounce could leave the precious metal vulnerable heading into next week.

Euro (EUR) Forecast: Weekly outlook for EUR/USD and EUR/GBP

Foreign exchange markets were relatively quiet overall during the holiday-shortened week, with the exception of the British pound. The euro rose modestly against the US dollar, consolidating recent gains, while the euro struggled against the British pound, returning to lows hit more than two weeks ago.

USD Forecast: Will growth and inflation lead to a prolonged decline in the USD?

The world’s largest economy appears to be feeling the effects of tighter financial conditions, with the dollar falling, as well as US yields and US economic indicators. Since the October NFP report, labor data has eased, retail sales and CPI data have declined, and overall sentiment data has been revised downward.

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All articles are written by DailyFX analysts and strategists