Gold and EURO given reason to smile

EUR/USD has been facing hard times since early week and the pair held 1.2930 support level and has appreciated more than 250 points since then. The pair found some momentum that was extended towards 1.3270 which gives more strength. As long as 1.3060 holds for now we expect further improvement in the next week. However, for now 1.330 is the next level that euro bulls should be aware.

GBP/USD has been trading choppily since UK budget released in Wednesday. After the news we witness a big slide in the pair, the pound manages to reverse all losses and continue to rise towards 1.4750. The risk appetite returned and traders were happy to trade both pound and euro. As long as the pair continues to trade above 1.45 we might witness some range forex trading in the coming days, as investors are still deciding which way to go.

The currency is now trading in the aftermath of the news, with euro still being strong and pound weakening as the day progress. Later on, we have very important number in the US with durable goods and new home sales. It will be interesting to see some improvement in numbers but more interestingly, I would be awesome to see the reaction of the investors if better numbers are printed.

Regarding the economic future markets is still under pressure. So far, future and equities, managed to sustain the upside and it will be interesting to see how DOW JONES will close the week.

With the G7 meeting starting today and forwarding in the weekend, let’s see what the 7 world leaders say about the current position and we are definitely going to hear something new about the way to solve the deepening global recession.