The USD is slightly softer as the boost to risk sentiment weighs, however, moves have been marginal at best. Following last week’s agreement to extend the Brexit deadline and with the UK parliament in recess, the Brexit concerns have eased slightly for now. As such, focus will be placed on the upcoming data points throughout the week. Consequently, downside risks remain prominent for the Turkish Lira, while volatility is likely to pick-up ahead of next week’s rate decision, in which the focus on central bank independence will be brought back into question.
A closing break below however, could pave the way for a move towards the 50% Fibonacci retracement situated at 1262/oz.
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