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The focus today is likely to be on U.S. economic reports and speeches from two Fed officials. With the chances of a 25-basis point rate cut at 100%, traders will be looking to see if the economic data or the Fed speakers signal the need for a more aggressive 50-basis point rate cut.
Investing.com - The U.S. dollar was higher on Tuesday after stronger-than-expected retail sales showed the economy was healthy, even as the Federal Reserve is expected to cut interest rates.
Investing.com - Gold prices turned lower on Tuesday after a strong retail sales reading sparked buying interest in the U.S. dollar and pushed Treasury yields higher, although stagnating industrial production briefly undid some of the move, while analysts recommended caution given high levels of long positions.
Investing.com – Wall Street was flat on Tuesday after mixed earnings from Goldman Sachs (NYSE:GS), JP Morgan and Wells Fargo (NYSE:WFC) reminded investors of uncertainties to the economic outlook - and of some negative consequences of interest rate cuts from the Federal Reserve.
EUR/USD has retreated in the early week and was last seen testing support from a range that has been playing out for nearly a week.
Global markets remain optimistic, which nevertheless does not allay investors’ fears at the start of the corporate reporting season. Stronger than expected macroeconomic statistics from the United States and China, as well as the expectations of lower interest rates from the Fed, support demand for risky assets and help stocks to develop an offensive.
GBP/USD has been steadily sold off as the dollar recovers higher. The pair has failed to hold above 1.2500 which is a clear show of weakness.
On the daily chart, the pair seemed to have difficulty in breaching the 1-month old descending slanting resistance. Today, the vital economic events remain the Fed’s Chair Powell’s speech and June Retail Sales data.
The U.K. labor picture remained strong in May, according to data released Tuesdayby the Office for National Statistics. Weekly earnings in the 3 months ending May rose 3.6%, the strongest rise since July 2008. The unemployment rate meanwhile stayed at 3.8%, matching the lowest level since 1974.
Asian shares are tired and struggling for direction this morning due to a lack of fresh market-moving news, with investors on the side-lines ahead of earnings reports from major American companies.
The focus now shifts to the U.S. economy as investors get the opportunity to react to a slew of economic reports ranging from the major retail sales data, and the minor import prices, capacity utilization, industrial production, business inventories and the NAHB housing market index.
The market paused for thought overnight while shifting away from the recent buy all trend that was triggered by the definitively dovish tone from Chair Powell last week.
Investing.com - U.S. futures were flat on Tuesday, uninspired by earnings from JPMorgan and Johnson&Johnson; that both beat expectations.
Investing.com - Gold prices traded higher on Tuesday in Asia despite bullish data from the U.S. and China.
Today, the GBP/USD pair maintained a strong downtrend amid rising Brexit uncertainities. Meanwhile, Lower-than-expected June Producer and Import Prices provided the extra ammunition to the resilient USD/CHY bulls.
The Gold markets continue to consolidate and grind sideways overall, as we don’t know what to make of Federal Reserve actions, and of course the global economy itself.
The British pound initially rallied during the trading session on Monday, but then broke down yet again to look for support underneath. We are currently trading just above the 1.25 handle, which of course is a huge psychologically important level.
The British pound gapped lower to kick off the week, turned around to rally through that gap, and then fell again. Ultimately, this is a market that shows extreme weakness, as we are pressing major support just below.
The Euro rallied quite a bit during the trading session on Monday but also gave back quite a bit of the gains. At this point, it looks as if the 1.13 level will continue to be rather resistant, so it’s not a huge stretch to think that we will continue to see a lot of choppiness.
The Aussie dollar rallied a bit during the trading session on Monday, reaching towards the shooting star that formed last week. This shows the importance of the 0.7050 level, an area that has turned the market around again. However, we are reaching towards that level in a push to break out.