EURUSD Reclaims 1.13, Gold Cracks $1400, Oil Price Volatility Persists - US Market Open
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
WHAT’S DRIVING MARKETS TODAY
- “Crude Oil Price - Trump Fuelled Rally Running into Resistance” by Nick Cawley, Market Analyst
- “USD Price Analysis: Risk of Deeper Losses as Fed Confirms U-Turn” by Justin McQueen, Market Analyst
- “US Dollar Price on the Brink of Support Break: DXY, Euro Charts” by Paul Robinson, Currency Strategist
- “Using FX To Effectively Trade Global Market Themes at IG” by Tyler Yell, CMT , Forex Trading Instructor
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.email@example.com
Follow Justin on Twitter @JMcQueenFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.