February 21, 2022
GBP/USD: Cable tried but couldn’t break out of its narrow trading range that dominated the market for most of February, while bears pushed prices below the 1.36 level during US trade. As a result, the safe-haven US dollar gained against most of its counterparts, including the British pound. Strong January Retail Sales data published last Friday couldn’t support an uptrend in sterling, despite the fact this is a good sign that the UK consumer sector showed positive growth at the beginning of the year. It’s also important to note that the UK and US February PMI data as well as the central bank’s speech and US inflation data for January are still the main highlights on the data calendar.
AUD/USD: Aussie failed to keep its quotes above the 0.7200 level for the fourth consecutive session despite positive jobs data released last week, supporting RBA’s monetary tightening this year. The highlight of this week’s economic calendar will be Australian Wage data released on Wednesday. On other days, Australian PMI data for February and the US January inflation report could affect the market, while the Fed speak will be closely watched as well. So, if you have short positions, we recommend keeping them until the Fed speak because this is the most significant event which could drive the markets during this week apart from geopolitical tensions in Eastern Europe.
Gold: Yellow metal showed the bullish dynamic, rising 0.60% on Monday’s Asian session. But later, it failed to hold at this level and bears pushed it back down to the 1892 mark. In doing so, the yellow metal almost extended the previous three-week uptrend to refresh an eight-month high. However, it should be noted that the recently downbeat US inflation data indicated by the 10-year inflation rate per the St. Louis Federal Reserve data also adds to the gold buyers’ optimism ahead of this week’s key inflation numbers.
BUY 1896.00/TP 1903.00 – 1905.00/SL 1892.00