The US Dollar (via the DXY Index) was on its way to its lowest levels in two months earlier today before a series of weaker data releases from China and Europe prompted demand for the greenback. Q1’18 Chinese GDP missed expectations slightly, February UK wage growth figures came in below expectations, and the March German ZEW Survey posted larger declines than expected.
The weakness in data abroad has seen both the British Pound and the Euro sell off slightly this morning, prompting demand for the US Dollar, and otherwise saving it from more downside following US President Trump’s comments (on Twitter, of course) about currency manipulation and exchange rates yesterday. Confusingly, his comments came just days after his own US Treasury department issued a report to Congress suggesting that no countries are seen as currency manipulators.
Amid the rebound in the US Dollar and further strength in US equity market futures, Gold has eased off once again, although remains comfortably within the confines of its bullish symmetrical triangle that eyes an upside resolution.
As always, please use protective buy and sell stops when trading futures and options.
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