The renewed protectionism concerns and Trump jitters have triggered risk aversion this week consequently attracting investors to safe-haven assets. In times of unease, gold remains a trader’s best friend and such was displayed on Thursday when the metal punched above $1,253 per ounce.
Sterling has staged a remarkable rebound this week with bulls almost rebelling against the Brexit woes by propelling the British pound (GBP/USD) currency pair above 1.2500 during Thursday’s trading session. The dollar’s persistent weakness combined with February’s blockbuster retail sales figure of 1.4% may have created an illusion of a bullish bias returning to sterling.
The Trump jitters have returned with a vengeance this week with global stocks coming under renewed selling pressure as uncertainty mounts over Donald Trump’s proposed economic growth agenda. Asian shares were vulnerable to steep losses during early trading on Wednesday posting their largest drop in two weeks amid the risk-off trading mood.
The 2.3% UK inflation level superseding average earnings which currently stand at 2.2%, consumer spending may be negatively impacted and such could trigger fears over the sustainability of the UK’s consumer fueled economic growth.
The market expectations of a probable U.S. interest rate increase in March were fully cemented by February’s solid NFP headline figure of 235k which illustrated steady growth in the U.S. labor markets.