The latest advanced GDP report from the United States showed that the economy grew by 2.1% on the quarter ending December 2019. This enabled the US to grow at a pace of 2.3% annually on the year.
The data comes amid investor concerns of a sharp slowdown. Consumers remain the primary driving force in the GDP figures for the fourth quarter.
Economic Sentiment in Eurozone Rises to a 7-month High
The European economic confidence report shot to a seven month high in January. The index rose to 102.8 during the month, beating estimates of 102.0.
This was also higher from 101.3 in December. In a separate report, the unemployment rate in the eurozone fell to a decade low in December.
EURUSD Maintains a Steady Rebound
As expected, the common currency is holding up after rebounding from the support level of the 1.1000 region. We could expect a modest pullback with the Stochastics moving into overbought levels.
Still, a formation of a higher low will confirm the upside. In such a scenario, the EURUSD will be targeting the resistance level of 1.1072 in the near term.
BoE Keeps Rates on Hold
The Bank of England held its monetary policy meeting on Thursday. The central bank’s MPC voted to keep interest rates unchanged, amid speculation of a rate cut.
There were two dissenting votes in favor of a quarter-point cut to interest rates. The central bank also issued downbeat forecasts as it now expects growth to rise just 0.8% this year.
GBPUSD Jumps on Strong Rebound
The currency pair made strong gains on Thursday, rising sharply in the closing hours. The gains saw price action testing the resistance level of 1.3100. If price action fails to breakout higher, then watch for a possible right shoulder formation of a head and shoulders pattern forming.
The downside support near 1.3000 will come into focus.
Gold Prices Hold Steady on Global Cues
Gold prices are relatively stable, although the precious metal is not making any new highs. Amid concerns of the impact of the coronavirus, the precious metal remains well in favor.
The latest advance GDP reports from the US put a slight damper on gold prices. The precious metal did not react much to the Fed or the BoE meeting over the week.
XAUUSD is Struggling Near Previous Highs
Gold is struggling to breakout higher as it approaches the previous highs made earlier this month. A breakout above this level is required to confirm further continuation to the uptrend.
The resistance level of 1594 will also prove to be a strong one to break in the near term. This keeps the bias somewhat mixed in the near term.