There are no U.S. economic reports today and Federal Reserve members are in their quiet period so the price action in gold is likely to be event driven. Gold traders could be particularly sensitive to escalating tensions in the Middle East and the outcome of elections in the UK.
Gold is trading around the 1,425 area. Technical studies suggest that the bearish pressure is considerable with the 1,400 area as the first support. Below there, 1,380 is the level to watch.
Based on the early price action and the current price at 1.1216, the direction of the EUR/USD the rest of the day is likely to be determined by trader reaction to a pair of Gann angles at 1.1223 and 1.1212.
Investing.com - The pound dipped on Monday as the U.K.’s conservative party begins voting on who will become the next leader of Parliament.
London markets climbed on Monday as escalating tensions in the Gulf lifted crude prices and the FTSE 100’s oil majors.
Investing.com – Wall Street rose on Monday on the hope that technology earnings this week come in strong and top analysts' expectations.
Based on the early price action and the current price at .7040, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the downtrending Gann angle at .7036.
Last week’s recovery rally appears to be short-lived as GBP/USD is seen dipping below 1.2500 once again. At the same time, the weekly charts show buyers are present and so bears should be cautious here.
Investing.com - Gold prices traded flat on Monday as the Federal Reserve and European Central Bank entered blackout periods ahead of key policy decisions which markets expect to point to further easing.
EUR/USD had some volatile swings last week but held within a range. With the ECB scheduled this week, a range break appears probable, the question is which way the exchange rate will break.
Markets have started the week under pressure. Expectations that the Federal Reserve will cut interest rates by 50 points in July collapsed from 60% to 23%.
On the 1-Month Chart, the bulls seemed to remain ahead of the bears. Anyhow, in the daily chart, the near-term 50-day SMA was moving downwards, crossing the 100-day and 200-day SMAs, making a “Death Cross” condition.
Investing.com - U.S. futures were higher on Monday as Wall Street looked set to recover from last week’s decline, with earnings season still in focus.
The markets have priced in a 25-basis point Federal Reserve rate cut on July 31. The source of volatility this week for Aussie and Kiwi traders will be whether there will be a 50-basis point rate cut. There are no Fed speakers scheduled this week so traders are going to have a hard time determining the chances of the more aggressive half-percentage point rate cut. Therefore, brace yourself for a potential choppy, two-sided trade.
I have been going over the past data to attempt to identify future price targets and to help traders understand the true potential for the current precious metals price rally. A number of pricing dynamics are taking place throughout the global stock markets and the historical measures of price relationship in advancing and declining markets could help us better understand the potential upside for Silver as the price of Gold continues to rally. Here we go with our “what if” results.
Investing.com - The U.S. dollar inched up on Monday in Asia as investors turned their attention to global central bank decisions scheduled for the next two weeks, starting with the European Central Bank which meets on Thursday followed by the Bank of Japan and then the Federal Reserve next week.
Investing.com - The dollar pushed higher against the yen on Monday as investors tempered expectations for an aggressive Federal Reserve interest rate cut later this month.
There are no Fed speakers scheduled this week so traders are going to have a hard time determining the chances of the more aggressive half-percentage point rate cut. Therefore, I’m not expecting to see much movement in the Dollar/Yen. If there is, we’re likely to see position-squaring and short-covering.
Investing.com - Gold prices rose on Monday in Asia after notching up a second-straight week of gains amid expectations for a Federal Reserve rate cut later this month.
The key event that will likely drive the price action in gold this week is the European Central Bank’s (ECB) monetary policy decision on July 25. This is because it will also impact the U.S. Dollar Index. Since gold is a dollar-denominated investment, its direction will be determined by the movement in the greenback.
It’s a big week ahead for the markets. Earnings, economic data, Iran, trade war chatter, and the ECB are all in focus.