As UK vaccination rates have slowed, coupled with a backdrop of calmed UK Gilt yields, the British Pound’s relative appeal that carried it through the first three months of 2021 has been tarnished.
The break above the March high ($1760) may push the price of gold towards the February high ($1872) as key reversal appears to be unfolding in April.
The Consumer Sentiment Index rose to its highest level since the onset of the pandemic in April but failed to meet expectations.
The US Dollar has fallen to critical support as risk sentiment continues to support Emerging Markets and carry trade
I’m short EUR/MXN in the second quarter, given the Euro’s resilience against EM currencies in the last 6 months, despite risk-on appetite bringing them back from March 2020 lows.
The single currency is struggling to break back above 1.2000 against the US dollar and a series of chart signals is muddying the outlook.