Gold diverging from the USD

  • US Retail sales shockingly weak, but are being dismissed.  Unemployment claims are softer, but consumer confidence may be holding up.
  • EUR continues to sink on weak data (IP and GDP), but employment data has been more stable.
  • Chinese trade data recovers, although still lower from earlier in 2018.
  • US imports to China plummet, China exports to the US weak, displaying the impact of the trade war.
  • US-China trade talks are dragging on.
  • UK parliament remains divided, May dogmatic, UK businesses despairing.
  • Gold diverging from the USD trend, retaining solid uptrend.
  • Global asset markets are sending mixed signals; we are not convinced USD strength will continue.
  • A significant amount of negativity is priced into the EUR.  There is much talk of central bank demand for gold, but in general, its strength suggests confidence in the USD and state of the global economy is tenuous.
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Greg Gibbs,
Founder, Analyst and PM
Amplifying Global FX Capital Pty Ltd