Carlo Alberto De Casa, Chief Analyst for ActivTrades, joined Nick Batsford and Zak Mir on the Tip TV Finance Show to discuss future outlooks on precious metals and forex.
Precious metals: Platinum and Palladium affected by VW, Gold just over 1100
De Casa outlined how Platinum is in a bullish trend close to $900 per ounce, but the recent Volkswagen (XETRA:VOWG) emission scandal has resulted in panic selling of Platinum because of its use as a catalyst for diesel cars. He concluded that it is difficult to judge the bottom.
He moved on to Palladium, which he outlined that it reached the peak of $900 per ounce a couple of years back. De Casa commented that it is up 20% recently as it is less involved with cars and thus less effected by VW.
When concerning Gold, De Casa highlighted the good news of Yellen postponing a rate rise, possibly to 2016. He noted the recent rebound from 1060 to 1160, and how gold is currently just over 1000, but for the future he believed gold is in a long term bullish trend.
Forex Forecast: EUR/USD in a trading range, EUR/GBP awaiting clear direction
De Casa noted that the EURUSD is in a clear trend, heading from around 140 to close to parity. But for now, the pair is trading sideways within a range, as it attempts to find a new equilibrium. Mir added that Yellen will raise interest rates in the US at some stage, and De Casa responded that the effect on EURUSD is dependent on whether this as well as Draghi QE in Europe has been already accounted for in the price.
In terms of the GBPUSD, he briefly commented on the important area around 151 which at the moment the pair seems to be approaching.
He finished with the EURGBP, and outlined that it is awaiting a clear signal for direction, and despite it appearing to show a bullish set up, both De Casa and Mir remain unsure. Mir added that it is difficult to see how the GBP can win against the EUR.