The euro rose to a four-month high against the dollar on Wednesday on hopes European Union leaders may agree on stimulus and deepening fiscal integration to shield the economy from the pandemic. The dollar was on the defensive, particularly against other growth-leveraged currencies such as the Australian dollar, following an uptick in U.S. inflation and news of progress in vaccine development for COVID-19.
Posted by OFX AUD - Australian Dollar The Australian dollar crept higher through trade on Tuesday, supported by underlying USD weakness and a small uptick across risk assets. Trade was choppy and moves relatively modest as ranges across currency markets narrowed. The AUD has struggled to break outside a 70 point range … Continue reading "AUD trades sideways as broader ranges narrow"The post AUD trades sideways as broader ranges narrow appeared first on .
The dollar fell in North American trade on Tuesday as expectations for inflation picked up slightly and the euro rose on optimism about the possibility of a European Union stimulus package. U.S. consumer prices rebounded by the most in nearly eight years in June, according to a Labor Department report released Tuesday. "If anything, the CPI print is understating actual inflation in the U.S. economy," said Karl Schamotta, chief market strategist at Cambridge Global Payments.
USD/CAD managed to get above the 20 EMA at 1.3590 and tried to gain more upside momentum.
The dollar fell in North American trade on Tuesday as the euro rose on optimism about the possibility of a European Union stimulus package and as U.S. stocks gained. The U.S. dollar index, which measures the safe-haven greenback against a basket of six rival currencies, was down 0.31% to 96.265. The weaker dollar was partly attributable to a move higher in the euro on hopes the European Union will agree on a rescue financing package that will limit the economic damage to the bloc from the coronavirus pandemic.
Gold initially sold off on Tuesday but found enough buyers to turn around and form a hammer. There are plenty of fundamental reasons for gold to go higher.
US dollar rallied slightly on Tuesday after dipping overnight. As we see the greenback rise against the Japanese yen, the ¥107.50 level comes into play.
British pound fell on Tuesday, reaching down towards the 50 day EMA before bouncing slightly. We are at a bit of a decision point when it comes to the Sterling.
The British pound fell during the trading session on Tuesday, testing the 50 day EMA against the Japanese yen. By doing so, it did in fact find some support.
Euro has rallied again after dipping on Tuesday, but the 1.14 level continues to be difficult to overcome. I believe that we continue to see chop and a grind.
The Australian dollar has failed to continue rallying again, as the 0.70 level has been extraordinarily resilient as far as resistance is concerned.
Silver tries to gain more momentum in continuation of the current upside trend.
Gold futures contract gained 0.68% on Monday, as it retraced some of late last week’s downward correction following Wednesday’s advance to new long-term high.
Sterling weakened against the Dollar and most G10 currencies on Tuesday morning after UK economic growth figures massively undershot expectations by increasing a tepid 1.8% in May versus the 5% forecast.
The number of cases of Covid-19 in the U.S. have been rallying very quickly in last weeks, giving way only to the gold prices, which have surpassed $1,800.
The British pound declined broadly early Tuesday after UK GDP growth was reported to rise at a pace much lower than expected.
EUR/USD is attempting to print a third consecutive day of gains and is trading near highs not seen in over a month as the dollar continues to push lower.
The EUR/USD is fully rangebound. We can see that the price is going sideways in the form of rectangle which indicates no real trend.
GBP/USD failed to settle above the resistance at 1.2650 and fell towards the 20 EMA at 1.2520.
Gold is testing strong overhead resistance just above the $1,800 level. How gold behaves now and over the next several weeks will determine its trajectory for at least the next 18 months.