Traders are sitting on the sidelines, awaiting
the news from the G20 summit which kicks off
tomorrow in Osaka.
Meanwhile, safe haven gold has rocketed to
the level of 1,430 US dollars a troy ounce
on the back of uncertainty in the trade relations
between the US and China and a growing risk
of a full-blown military campaign between
the US and Iran.
However, investors regained appetite for risk
for a short time in light of the remark by
Treasury Secretary Steven Mnuchin who said
that the trade deal is quite possible.
So, the gold price made a correctional decline
to 1,400 US dollars.
Nevertheless, Donald Trump pushed investors
on edge as he threatened to impose more hefty
tariffs if he does not come to a common denominator
with China’s leader Xi Jinping.
The risk of escalation of the trade conflict
between the two largest global economies influenced
trading sentiment across the board.
The US dollar index which tracks the greenback
against major currencies is stuck in a trading
range at about 96.20.
Interestingly, today the revised GDP data
confirmed steady growth of the US economy.
According to the final estimates, US GDP increased
at an annual rate of 3.1% in the first quarter,
unrevised from the second estimate and in
line with economist expectations.
Earlier, in the first estimate analysts reckoned
GDP growth at 3.2%.
Later, GDP rate was downgraded in the second
The revised data did not change market sentiment.
The Canadian dollar came to a standstill.
The USD/CAD pair is trading flat at around
1.3120, the level where the price dropped
Meanwhile, the crypto market is a hive activity.
Apparently, the agenda of the summit includes
a burning issue of blockchain technology.
Thus, a lot of traders are rushing to close
a part of their long deals on bitcoin.
They are taking profit after a recent surge
of the price above the level of 13,000 US
dollars per token.
Today, the price of the most popular cryptocurrency
shed 10% and settled down at 11,800 dollars.
Like market participants, InstaForex TV channel
is also switching to the waiting mode.
That is all for today.
We wish you profitable deals!
See you on our channel tomorrow!