Investors received an unexpected gift during trading on Tuesday when gold surprising dropped below its psychological support level at $1,300 per ounce. Elsewhere, the British pound has continued to crumble in the early hours of trading on Wednesday with the pound/dollar finding another 30 years plus low below 1.27 at 1.2684.
After recovering ground following a return to levels not seen in over a month below 1.29, the bounce in the British pound/U.S. dollar currency pair appears to have lost momentum at the conclusion of the week following headlines being made by UK Foreign Secretary Boris Johnson that the process of leaving the European Union does not need to take two years once Article 50 is invoked.
While the U.S. dollar has turned slightly lower as trading for the new week has commenced, the major currency rebounded and moved significantly higher at the conclusion of last week with this pressuring other major currencies like the Euro and the British Pound.
The British Pound is continuing its recovery phase as the new trading week continues, extending gains from last week following economic data indicating that the European Union referendum outcome might not have negatively impacted the UK economy in the way that was previously feared.