Daily Market Analysis By FXOpen

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EUR/GBP Rate at 21-Month Low Post-European Parliament Elections

Investors will begin the week in a state of uncertainty regarding the outlook of Europe's political landscape.

The four-day European Parliament elections concluded on Sunday. According to Reuters, the results showed a significant gain for eurosceptic-nationalists, who have displaced liberals and greens.

Additionally, President Emmanuel Macron dissolved the French Parliament, calling for early legislative elections later this month after losing to Marine Le Pen's far-right party in the European Union elections.

All this puts pressure on the structure of the European Union, weakening the euro's value.

As shown by the EUR/GBP chart, trading on the currency markets opened on Monday around the 0.8465 level—a price not seen since August 2022.

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[Resolve]

Gold Price Drops After US Employment Report

As per ForexFactory, the Non-Farm Employment Change report revealed an actual increase of 272 thousand jobs (expected = 182k, previous value = 165k).

A robust job market provides further arguments for the Federal Reserve to continue its tight monetary policy. Consequently, the news led to a rise in the dollar index and a decrease in assets denominated in US dollars:
→ Currencies depreciated; for instance, the NZD/USD rate decreased by approximately 1.5%;
→ Cryptocurrencies declined; Bitcoin dropped by roughly 3%;
→ Gold also decreased in price.

The situation worsens for the gold price with the news that China has stopped buying the metal for reserves after doing so for 18 months. According to ING, China's appetite showed signs of weakening in April when the central bank purchased only 60,000 ounces compared to 160,000 ounces in March.

TO VIEW THE FULL ANALYSIS, VISIT THE FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.