EURUSD Reclaims 1.13, Gold Cracks $1400, Oil Price Volatility Persists - US Market Open
MARKET DEVELOPMENT –EURUSD Reclaims 1.13, Gold Cracks $1400, Oil Price Volatility Continues
DailyFX Q2 2019 FX Trading Forecasts
EUR: Marginal outperformance in the Euro this morning as Eurozone PMIs show signs of a potential stabilisation. Keep in mind that this is from a low base, particularly when it comes to Germany’s Mfg. PMI, however, the fact that there have been some signs of a slight improvement has been enough to push through 1.13.
Gold: With fresh central bank stimulus on the way and a record high amount of global bonds yielding a negative rate, gold extended on its gains to crack above $1400, target we had been calling for once the Fed reverse policy. However, given the size of the gains over the past month, we do not rule out some short-term consolidation as investors look to book some profits. Topside resistance is situated at $1430-35.
Oil: Volatility in the oil complex has increased as of late with tensions between the US and Iran continuing to escalate. Reports overnight noted that President Trump had ordered a strike on Iran before reversing course. However, given that tensions are unlikely to ease in the near-term, particularly with Iran looking to enrich Uranium above its nuclear deal limits on June 27th, there is a risk that oil price spikes continue to occur.
Source: DailyFX, Thomson Reuters
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--- Written by Justin McQueen, Market Analyst
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