Subdued Trading Continues as Dollar Range Bound, Gold Extending Recovery
| Action Insight Daily Report 7-5-23 |
Subdued Trading Continues as Dollar Range Bound, Gold Extending Recovery |
Commodity currencies are maintaining their position as the stronger performers of the week, while overall trading continues in a noticeably subdued manner. Both Dollar and Yen are seen navigating within familiar ranges against their European counterparts. Market volatility might experience a slight uptick as US traders return from holiday break today. While FOMC minutes are expected to garner attention, traders will likely hold off on any major bets until Friday's non-farm payroll data release. Technically, Gold continues to warrant some attention as the rebound from 1892.76 support is trying to extend. Decisive break of near term channel resistance (now at 1931) will be another sign of bottoming, along with bullish convergence condition in 4H MACD. That came after just missing 38.2% retracement of 1614.60 to 2062.95 at 1891.68. In this case, stronger rally should be seen towards 55D EMA (now at 1947) and above. If realized, that would likely be accompanied by renewed weakness in Dollar. In Asia, at the time of writing, Nikkei is down -0.25%. Hong Kong HSI is down -1.46%. China Shanghai SSE is down -0.51%. Singapore Strait Times is down -0.54%. Japan 10-year JGB yield is up 0.0187 at 0.394. |
EUR/USD Daily Outlook Daily Pivots: (S1) 1.0863; (P) 1.0893; (R1) 1.0908; More... Intraday bias in EUR/USD remains neutral and further rally is still in favor with 55 D EMA (now at 1.0854) intact. On the upside, break of 1.1011 will resume the rise from 1.0634 and target 1.1094 resistance. Decisive break there will resume larger up trend from 0.9534 to 1.1273 fibonacci level. However, firm break of 1.0834 will turn bias to the downside for 1.0634 support instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:45 | CNY | Caixin Services PMI Jun | 53.9 | 56.2 | 57.1 | | 06:45 | EUR | France Industrial Output M/M May | -0.20% | 0.80% | | 07:45 | EUR | Italy Services PMI Jun | 53 | 54 | | 07:50 | EUR | France Services PMI Jun F | 48 | 48 | | 07:55 | EUR | Germany Services PMI Jun F | 54.1 | 54.1 | | 08:00 | EUR | Eurozone Services PMI Jun F | 52.4 | 52.4 | | 08:30 | GBP | Services PMI Jun F | 53.7 | 53.7 | | 09:00 | EUR | Eurozone PPI M/M May | -3.90% | -3.20% | | 09:00 | EUR | Eurozone PPI Y/Y May | 6.10% | 1.00% | | 14:00 | USD | Factory Orders M/M May | 0.60% | 0.40% | | 18:00 | USD | FOMC Minutes |
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