News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
More View more
Real Time News
  • Heads Up:🇫🇷 Business Confidence (JUN) due at 06:45 GMT (15min) Expected: 109 Previous: 107 https://www.dailyfx.com/economic-calendar#2021-06-24
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/FMNgFqNlSI
  • Wall Street Futures Update: Dow Jones (+0.21%) S&P 500 (+0.20%) Nasdaq 100 (+0.27%) [delayed] -BBG
  • Ever wonder if there are other chart types that can be sued for technical analysis? HLOC charts are discussed in the following article as well as their pros and cons. Learn more here: https://t.co/qV3c7a4YR3 https://t.co/Dtdi2EWWhw
  • 🇳🇱 GDP Growth Rate YoY Final (Q1) Actual: -2.4% Expected: -2.8% Previous: -2.9% https://www.dailyfx.com/economic-calendar#2021-06-24
  • 🇳🇱 GDP Growth Rate QoQ Final (Q1) Actual: -0.8% Expected: -0.5% Previous: -0.1% https://www.dailyfx.com/economic-calendar#2021-06-24
  • 🇳🇱 GDP Growth Rate YoY Final (Q1) Actual: -2.4% Expected: -2.8% Previous: -2.8% https://www.dailyfx.com/economic-calendar#2021-06-24
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 89.87%, while traders in GBP/JPY are at opposite extremes with 74.25%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/cnoTj8ADsn
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/BiGHhuzgWG
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.05% 🇨🇦CAD: -0.01% 🇪🇺EUR: -0.02% 🇦🇺AUD: -0.03% 🇯🇵JPY: -0.04% 🇨🇭CHF: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/CYyKMkrYgv
US Dollar Rallies, Gold Sinks to Support Ahead of Latest NFP Report

US Dollar Rallies, Gold Sinks to Support Ahead of Latest NFP Report

Nick Cawley, Strategist

EURUSD and Gold – Prices and Technical Analysis

  • EURUSD nearing 1.1500 support zone.
  • Gold continues to break lower on a strong dollar – weak Chines Yuan double.

The latest IG Client Sentiment Indicator shows how retail are positioned in EURUSD and Gold, and how daily and weekly changes in sentiment can affect trading decisions.

The DailyFX Q3 forecasts and analysis of USD, EUR and Gold are available to download here.

US Dollar Strength Seen Across the Market

The US dollar continues to press higher and is within touching distance of a new one-year high, supported by US Treasury yields and expectations of a better-than expected US jobs report. The dollar index (DXY) currently trades at 94.88, up a full point in the last four days. Today’s US non-farm payrolls report is expected to show 192,000 new jobs created, pushing the unemployment rate down to 3.9% from 4.0%, confirming the ongoing strength of the US economy. Wednesday’s FOMC meeting underscored a third 0.25% rate hike this year, in September, with heightened expectations of another hike in December.

EURUSD continues to weaken and now nears the 1.1500 level that has provided support over the last two months. As monetary policy continues to diverge between the two economies – the ECB is not expected to hike rates until Q3 2019 – the pair have come under increasing selling pressure and now eye the 50% Fibonacci retracement level at 1.1448. The 1.1500 level may provide support again, if central banks are defending this level, with a break lower likely to attract the ire of Washington. US President Donald Trump has already complained about the lowly level of the EUR and how it affects the balance of trade between the two and he is likely to become vocal again if EURUSD falls further.

EURUSD Daily Price Chart (May 2017 – August 3, 2018)

US Dollar Rallies, Gold Sinks to Support Ahead of Latest NFP Report

Gold Sinks to a One-Year Low

Gold continues to falter in the face of a strong US dollar complex and a weaker Chinese Yuan. With US yields rising, the non-interest bearing precious metal continues to lose its appeal with recent risk-off bounces sold into. Gold is also at the mercy of US-China trade tensions with the Chinese Yuan continuing to weaken as US trade tariffs are imposed. The correlation between the two assets remains firm and is seen as one of the primary drivers of gold’s weakness. USDCNH is currently quoted at 6.8940, its highest level since May 2017 and up from 6.2500 in March this year.

In-depth primer on Yuan Depreciation and US–China Trade Wars

Gold is now sitting on important support just under $1,205/oz. and a break lower would see $1,194/oz. the March 2017 low come into play ahead of the January 2017 low at $1,180/oz. The precious metal is in oversold territory according to the RSI indicator which may act as a short-term buffer against further losses.

Gold Daily Price Chart (June 2017 – August 3, 2018)

US Dollar Rallies, Gold Sinks to Support Ahead of Latest NFP Report

If you are new to foreign exchange, or if you would like to update your knowledge base, download our New to FX Guide and our Traits of Successful Traders to help you on your journey.

What’s your opinion on the rampant US dollar?? Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at Nicholas.cawley@ig.com or via Twitter @nickcawley1

--- Written by Nick Cawley, Analyst

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES