Forex News Timeline

Speaking about alternative growth models at a webinar on Saturday, the European Central Bank (ECB) President Christine Lagarde said that a falling trend in price pressures will persist over the next two years due to the coronavirus pandemic-driven economic transformation. Key quotes (via Bloomberg) “The transition to new economic models will be disruptive -- they will probably be more disruptive in the first two years, obviously hitting employment and production -- and then we can hope it improves productivity.” “So the inflation dynamic will necessarily be impacted, probably with a disinflationary, deflationary aspect at first, and then inflation dynamic.” “The ECB estimates that supply chains will shrink by around 35% and use of robots will increase by between 70% and 75%.” “An increase in online retail payments since the start of the year, and called on the European Union to develop a single digital market.” “Pandemics typically increase inequality, with economic and social consequences that the central bank will have to take into account.”    

Gold looks to break Friday’s range trade to the upside. Falling trendline hurdle at $1776.60 is the level to beat for the bulls. XAU/USD closed above all major hourly Simple Moving Averages (HMA).Following consolidation in a $5 range on holiday-thinned Friday, Gold prices (XAU/USD) are poised for another leg higher after falling off the seven-year tops of $1789.28 last Wednesday. With looming concerns over a surge in the coronavirus cases worldwide and economic recovery unlikely to wane, gold could likely continue drawing the haven bids in the near-tern. Although the ongoing optimism on the global stocks could slowdown the yellow metal’s advances towards the $1800 mark. Technically, looking at the hourly chart, gold is set to break through the falling trendline resistance aligned at $1776.60, also where Friday’s high converges. Acceptance above the latter could see a test of the multi-year high. The hourly Relative Strength Index (RSI) points northwards at 56.05, hinting at more room for the upside. Also, the fact that the price closed above the 21-HMA at $1775.45 adds credence to the near-term bullish outlook. Its worth noting that the XAU bulls have regained ground above all the major HMAs. On the flip side, the immediate downside could be capped by the 21-HMA, below which the next support awaits at the horizontal 100-HMA at $1774.64. Further south, the 50-HMA at $1772.93 is likely to offer some temporary reprieve to the bulls while the 200-HMA at $1770.36 is the level to beat for the bears in the coming days. All in all, the path of least resistance appears to the upside amid a lack of healthy resistance levels. Gold: Hourly chart Gold: Additional levels