Metal moves suggest USD weakness ahead
Twice this week Silver has posted a daily gain of 5%+, this is a serious signal and not to be ignored. Gold is following at a more sedate pace, but is still over 5% higher on the week.
The USD hasn’t actually moved much this week at all, except against the GBP, with most of the other majors losing ground earlier in the week and regaining those losses yesterday. However the FX market risk in my opinion is for some heavy and steady USD losses in coming weeks. The metals are giving us the direction.
I’m not really all that sure about the Yen and am leaving it alone, I’m still ueber bullish cable for a move to 1.70+ and I remain a base-picker in the AUD/USD for a move back to 96 cents.
Good luck today and TGIF.