Investing.com – U.S. futures pointed to a lower opening bell as earnings season and trade tensions continued to rattle investors.
Bitcoin showed further resilience Thursday, building on sharp gains already made earlier in the week. Often in the past, sharp moves higher in the price of the No. 1 digital currency have been followed by pullbacks, or at the least, consolidation. This time, bitcoin has recorded five consecutive winning days and the “price drift,” when an asset drifts in the same direction after a sharp move, suggests there’s more to come for world’s biggest digital currency, analysts say.
Investing.com - Copper and gold prices fell to the lowest levels in a year on Thursday amid a wider selloff in metals fueled by the stronger dollar and building trade tensions.
Emerging market foreign exchange trading is growing at a double-digit clip this year, as economic and political worries stoke volatility and sell-offs in currencies such as the Chinese yuan, Turkish lira and Mexican peso, industry data shows. 'G10' currencies from the developed world still dominate the $5 trillion-a-day forex market but emerging markets represent a growing share, particularly in spot trading.
Rice export prices in India slid to a 15-month low this week as the rupee remained weak and demand was sluggish as buyers held off purchases on hopes of deeper price declines, while Vietnam rates fell further on mounting supplies. Rates for India's 5 percent broken parboiled variety fell by $2 per tonne to $386-$390 per tonne, the lowest since April 20, 2017. Farmers in India have planted paddy rice on 11.67 million hectares as on July 13, down 8 percent from a year ago.
Investing.com - The dollar rose against a currency basket on Thursday, to trade near one-year highs after hawkish comments by the chairman of the U.S. Federal Reserve underlined expectations for two additional rate hikes by the central bank this year.
The U.S. dollar moved broadly higher Thursday, both against its developed and emerging rivals, while China’s yuan dropped to a low not seen since last July.
European stock markets decline on Thursday, pulling back from a one-month high as mining stocks tracked a selloff in the metal prices and traders digested the latest round of earnings reports.
U.K. stocks swung higher on Thursday and the pound tumbled after disappointing British retail sales stoked speculation the Bank of England may refrain from hiking interest rates in August.
Investing.com - The Australia’s dollar rose on Thursday after data showed the country’s employment surged in June, while the Chinese yuan fell after the central bank weakened its fixing beyond 6.7 for the first time since the currency began tumbling in June.
The gold prices drifted lower during the yesterday’s session slicing through the $1225 level. The silver prices further broke down during the Wednesday’s session, slicing through the $15.50 level. The market has broken multiple strong support levels in the short span of time which has turned the momentum very weak.
Based on Wednesday’s late reversal to the upside in gold and today’s early weakness, I expect to see prices continue to be guided by the movement and direction of the U.S. Dollar. The inverse relationship between the two couldn’t be clearer at this time. So this will be our indicator for gold prices until proven otherwise.
With general risk-off attitude, the market is testing the key support level and if it breaks further, then next immediate support in the market will be at 1.1580 level. In the longer term chart, this level has been an important support level and has been tested well in the past.
The USD/CAD is supported at 61.8 and 78.6 fib retracement of the last swing. 1.3166-84 is the first POC zone, where the bounce is possible, while the POC2 is 1.3125-1.3140. Both zones could be valid for longs providing that W L3 holds – 1.3110. Targets are 1.3220 and 1.3264. Continuation is only possible above 1.3265 towards 1.3307.
Investing.com - Gold prices dropped on Thursday as the dollar remained near a three-week high. U.S. Federal Reserve Chairman Jerome Powell’s comments this week implied increasing interest rates and continued to put pressure on the precious metal prices.
The pair has broken through the lows of the range and now threatens the important 1.30 region
Based on yesterday’s chart pattern and today’s early trade, the direction of the August Comex Gold futures contract today is likely to be determined by trader reaction to yesterday’s high at $1229.10. Although $1200.00 may be a psychological target, the true downside target is the December 15, 2016 main bottom at $1158.40.
Based on the early price and the current price at .7411, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the short-term pivot at .7413. The main trend is down according to the daily swing chart. The trend will change to up on a trade through .7443. Today’s intraday rally stopped at .7442, just short of this main top.
The Dollar/Yen is trading lower early Thursday, following through to the downside after the previous session’s technical reversal top. Demand for risk is slightly lower early in the session, sending some investors into the safe haven Japanese Yen. Investors are also reacting to weaker-than-expected domestic data. Domestically, Japan posted a trade surplus in June, but it came in below the forecast. After booking a deficit the previous month, new data showed a surplus, with exports rising despite ongoing international trade tensions. It looks as if USD/JPY investors are using the end of Powell’s semiannual congressional testimony as an excuse to book profits after a strong rally.
The AUD/USD is being underpinned early Thursday because at face value, today’s strong employment data is very good news. However, there are still some sticking points in the economy, namely a high level of underutilized workers and low wages. With unemployment and underemployment still comparatively high, it continues to weigh on wage pressures despite strong unemployment growth.
Gold markets drifted a bit lower during the trading session again on Wednesday as we continue to trying to find a bit of a bottom. While the $1225 level is important, the reality is that I think there is much more support below at the $1200 level.
The US dollar initially tried to rally during the day again on Wednesday but has found the ¥113 level to be a bit too expensive. That being the case, the pullback started as soon as the Americans came on board, and quite frankly I think in the end this will be a healthy sign, as we had gotten ahead of ourselves.
With all of the drama and noise around the United Kingdom over the last couple of days, it’s not a huge surprise that the British pound has taken it on the chin. However, as we saw the Americans come to work on Wednesday, the pair was testing a major support level. The 1.30 level has been important more than once, and I think at this point if the British pound is going make some type of stand, it’s here.