Sustain positive momentum to stocks, falling GBP and die-hard Gold

Stock markets Markets maintain positive momentum. The S&P 500 rose to highs since October, the Hang Seng hit 30K for the first time since June last year, German DAX hit 12000. The German market is experiencing the strongest growth momentum if we focus on the RSI index. Hopes for a trade deal between China and the United States are behind the stock exchanges rally during recent days, and they also help Germany, which is heavily dependent on world trade.

GBPUSD May requested a delay until June 30th. The Prime Minister wants Britain to withdraw from the EU before the beginning of the new European Union parliamentary session. However, the final decision still depends on Brussels. Donald Tusk wants to discuss the possibility of a “flexible extension”, as he is clearly tired of convening emergency meetings for small delays. EU officials are sharply negative about another London request, threatening to exclude Britain without a deal, which could happen as early as April 12th. This puts pressure on the pound, for the past 24 hours the currency lost 1% against the dollar, to 1.3050. Simply put, verbally the European Union is extremely annoyed, but in reality, it is still unlikely to want a chaotic Britain exit. In the case that the EU does not reject Britain’s request for a postponement, the next week may turn out to be more favourable for the pound.

Gold Gold managed to fight back against bears. The sale, which sent prices from 1290 to 1280 within a few hours, was equally rapidly reversed. Thus, support at the level of 1290 remains very substantial. However, it should be understood that the positive attitude of the stock markets and the relative stability of the dollar can be a decisive factor, forcing the bulls to abandon support in the area of 1280-1290.

Bitcoin The bulls were unable to immediately send the Bitcoin price above an important level, and this triggered a wave of profit taking, pushing BTCUSD to $4,800. Technical analysis indicates that growth above $5,300 can open the way to $6,200, that is, completely offset the November recession. It is important to note the growth of trading volumes, which confirms the growing interest of market participants in the current rally.

Alexander Kuptsikevich, the FxPro analyst