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EUR/USD ends week flat, unable to break 1.1000
EUR/USD is about to end a five-week positive streak with a slight loss. The Euro failed to rise above 1.1000, but it held above 1.0900, despite some bouts of dollar strength, including on Friday after the upbeat US S&P Global PMI figures.
Gold steadies around $1,980; down $20 for the week
Gold price bottomed at $1,971 on Friday, after the release of better-than-forecast US S&P Global PMI; and then rebounded to $1,980. The yellow metal dropped $20 from the level it had a week ago, suffering the worst weekly fall since February.
Global Growth Prospects Continue to Improve
Given the sheer size and influence of China’s economy, upward revisions to China’s growth outlook can have positive implications around the world and boost our global GDP forecast. With China’s economic rebound still intact, another global GDP growth upward revision could be forthcoming.
A recent report from the Commodity Futures Trading Commission (CFTC) of the United Kingdom showed that net positions for GBP pairs were at £1.3K versus short positions of £-2.4K this week. The report indicated that there was a reversal in the overall net positions of GBP pairs, as the net position had been at £-2.4K the week prior.
Prior to this week’s figures, net long positions on GBP pairs had been increasing since March, when they stood at £-5K. The report suggests that currency traders are starting to take a more bullish stance on GBP, as uncertainty around Brexit negotiations continues.
The figures also show an increase in net positions for EUR pairs and a decrease in net positions for JPY pairs. Net positions for EUR pairs rose to £13.6K this week, up from £12.1K from the previous week. Meanwhile, net positions for JPY pairs declined to £-10.5K from £-9.2K.
The CFTC report indicates that traders are more confident about their investments in EUR pairs than in JPY pairs, as political and economic issues continue to plague Japan’s economy.
Overall, the CFTC report reflects traders’ increasing optimism about the GBP and EUR pairs and declining confidence about the JPY. Despite the recent reversal of GBP net positions, it seems likely that the trend of improving sentiment will continue as Brexit negotiations remain on track.