Forex Daily Forecast, Analysis and Prediction

The British pound went back and forth in rather choppy trading on Monday as the market continues to hug the $1.33 level.

The euro gapped a bit lower on Friday, as we saw a little bit of a short squeeze during low volume on Friday.

Gold markets rallied a bit during the early part of the trading session on Monday, only to give up gains and go looking towards the uptrend line.

The Australian dollar struggled a bit as we initially tried to rally on a gap higher on Monday, only to turn around and fall.

Bitcoin rallied a bit on Monday to wipe out the losses that we just had.

The S&P 500 bounced on Monday using the 50-day EMA as support.

The NASDAQ 100 exploded to the upside on Monday, wiping out all of the losses from Friday in a very thin environment during that session.

The West Texas Intermediate Crude Oil market rallied significantly on Monday after selling off quite horrifically on Friday.

The EUR/USD pair was little changed as concerns about the new Omicron variant of Covid eased.

The BTC/USD pair was little changed in the overnight session as the market waited for the latest American confidence data.

The AUD/USD pair was little changed in the Asian session as the market reflected on the latest Australian and China data.

The USD/MXN climbed to new highs going into the weekend, and the Forex pair in early trading today is sustaining its higher value range.

After selling off due to the recovery of the US dollar, the gold price fell to the support level of $1778, but with the emergence of the new variant from South Africa, European countries re-imposed restrictions, despite the strong vaccination rate.

A state of risk-aversion prevailed in global financial markets at the end of last week’s trading amid decisions by countries around the world to impose restrictions due to a new variant of the Corona virus that resists available vaccines.

The British pound suffered heavy losses against low-yielding and safe-haven currencies before the weekend after a new strain of the virus led to panic in global financial markets, which could have various repercussions for the GBP, the EUR and the USD.