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USD Closes Weak Into Month End

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The US dollar closed in the red on the last trading day of January. Economic data on the day saw the US core PCE rising 0.2% on the month.

On a yearly basis, core PCE held up at 1.6%, unchanged from the previous period.

Personal income rose less than expected at 0.2% on the month, while personal spending rose 0.3%, matching estimates.

Eurozone Inflation Steady, GDP Dips Lower than Forecast

The latest flash inflation estimates for the eurozone were more or less in line with estimates.

Headline inflation rose 1.4% but core inflation was up just 1.1%, down by a 0.1 percentage point. The advance GDP report for Q4 2019 was a tad weaker, rising just 0.1% compared to estimates of a 0.2% increase.

EURUSD Maintains the Bullish Upside

The common currency quickly reached past the initial resistance level of 1.1072 to close on Friday at 1.1095.

The gains come following a decline to the psychological support area of 1.1000. But the question is whether the EURUSD can maintain the upside. The next main resistance is at 1.1100 followed by 1.1131.

Sterling Closes in the Green as the UK Formally Leaves the EU

The pound sterling rose over 0.80% on Friday, the last day before the UK leaves the EU. This now means that lawmakers on both sides have the next 11-months to chalk out the various aspects covering trade and immigration.

The gains in the GBP were also partly attributed to the weakness in the USD.

GBPUSD Faces Resistance at 1.3226

The current gains in the GBPUSD will see price testing the resistance level of 1.3226. A breakout above this level is quite possible if the bullish momentum holds.

Alternately, a reversal near this resistance will signal a move back to the 1.3100 level where support could form. We expect price action to remain range-bound within these levels in the near term.

Gold Prices Rally into the Month-End

The precious metal caught a bid as it surged over one percent into Friday’s close. The gains came amid a mix of cautious fundamentals. Most importantly, the current themes affecting investor sentiment include the coronavirus, the US monetary policy course, and global economic growth.

XAUUSD Could Stall Near 1600 Resistance

The current gains in XAUUSD will see prices rising to test the 1600 level. This will mark a more firm test of this psychological level. Although prices tested this level previously, they were rejected sharply.

Thus, a close near 1600 will confirm the resistance level. This will now open the way for a possible correction. The breakout level of 1562 will be the prime candidate in case of a decline.

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Source: https://www.orbex.com/blog/en/2020/02/usd-closes-weak-into-month-end
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