Dollar had a small rebound after positive economic data

Dollar had a small rebound after positive economic data

Dollar had a small rebound after positive economic data

 

The hawkish tone and global bond tantrum unleashed by central bankers at the Sintra ECB forum two weeks ago is now a distant memory, and after Janet Yellen surprised markets with an unexpectedly dovish (in the market’s interpretation) testimony yesterday, overnight global shares hit their fourth all-time high in less than a month as concerns about the tightening Fed were laid to rest, sending September and December rate hike odds sliding.

EU Equity markets trade mixed on the day, as futures were bullish following Yellen’s dovish tone Wednesday, with markets seemingly taking a breather from a busy day’s trade on Wednesday. Sector specific is also mixed, as oil lags the energy sector. Materials are the noticeable outperformer, as metal markets trade the vast majority in the green amid the risk tone and dampening dollar sentiment.

The number of individuals filing for initial jobless benefits in the week ending July 8 decreased by 3,000 to a seasonally adjusted 247,000 from the previous week’s revised total of 250,000, the U.S. Department of Labor said.

Gold trades in an ascending price channel according to the Bloomberg 1H Chart.

If there is a continuation of the bullish momentum, the commodity could break out above 1223.93 and possibly extend more gains toward 1227.46.

In the case of a bearish reversal, Gold could retreat toward the 1217.44 and extend losses through the 1214.48.

In currencies, the BOC made more waves after its head Poloz sees modest overshoot in inflation in 2019; says policy not on a predetermined path, further stating, the Central Bank must target future inflation. FX markets have taken a back-foot yesterday morning, as much slow down following the volatility seen in the majors Wednesday. GBP has been the most interesting mover on the day, following an overnight article from BoE’s McCafferty, cementing his hawkish tone, and his vote for a hike in August. USD/JPY continued its bearish pressure into Asian trade; not looking back since rejecting 114.50, taking another spike below 113.00 in Asian trade, the pair has consolidated around this level throughout European trade, with any clear break possibly set to result in a test of the 109.50 range.

In commodities, OPEC crude output rose by 340 kb/d in June to 32.6 Million Barrels per Day after Saudi flows increased and Libya and Nigeria, spared from cuts, pumped at stronger rates. As this news was digested, oil saw selling pressure, with WTI trading through USD 45.00. Precious metals benefitted from Yellen’s tone Wednesday, as Gold rose for the fourth successive day.

The euro failed to sustain an early advance against the dollar and retreated to trade below the $1.14 level as investors unwound long positions on the currency to take profit.

EURUSD – Janet Yellen’s testimony to Congress Wednesday was far from hawkish, yet her remarks about the balance sheet reduction and inflation matched market expectations. The common currency has since they failed to move above Wednesday’s high of 1.1489.

 

EUR/USD

 

GBPUSD – Sterling was among the day’s best performers and rose as much as 0.5% to 1.2952 high, before paring gains. Offers above 1.2940, absorbed buying pressure, while leverage accounts saw to sell rallies near 1.3000.

 

GBP/USD

 

USDJPY – USDJPY was rather volatile with whipsaw kind of move for the day so far. It rose higher only to be faced by sellers as Safe Haven Demand still is in the demand.

 

USD/JPY

 

USDCAD – Some demand seen Thursday to fade the drop in CAD implied volatilities. One month slightly higher at 6.78%, compares to Wednesday high of 7.35% before the BOC decision.

 

USD/CAD

 

Dow Jones – More Upward pressure was found in the Dow Jones which moved higher towards the 21,500 before capping around that area where it currently trades.

 

 

Now is your chance to make a profit!

Open an account here!

 

***Information contained in this news letter are gathered from third parties and should not be regarded in any way as trade advice or recommendations by CM Trading. CM Trading does not recommend or advise traders or investors in their decision making, but merely provides information from the market for its clients as additional information being made available as per the events occurring in the financial markets.

 

 

HIGH RISK WARNING:

Trading Foreign Exchange (Forex) and Contracts for Differences (CFD’s) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin.

© Copyright 2015 – CM Trading – All rights reserved 

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp
Share on email
Email

Recent .

meta trader 4
MetaTrader 4 app: How you can start trading the markets on the go

MetaTrader 4 app: How you can start trading the markets on the go  The markets are always on the move and therefore, traders who aim to take advantage of …

Read More →
Dogecoin is going to the moon… literally!

Dogecoin is going to the moon… literally!  While the cryptocurrency markets have been put through the mill the past few weeks, Dogecoin managed to steal the spotlight …

Read More →
Stock of the Week: Apple in huge demand, beats estimates by billions.

Stock of the Week: Apple in huge demand, beats estimates by billions. Apple beat estimates for quarterly earnings by billions of dollars. We look at …

Read More →
Stock of the week: Facebook makes CEO Mark Zuckerberg $8 billion in just one week!  

Stock of the week: Facebook makes CEO Mark Zuckerberg $8 billion in just one week!   It has been a momentous week for Facebook CEO Mark Zuckerberg who …

Read More →
Big Tech earnings roll in – Huge profits for Google, Microsoft and more! 

Huge profits for Google, Microsoft and more! Major big tech companies have released their quarterly earnings. We look at how some of the world’s biggest businesses performed so far this year!     Google, …

Read More →
MetaTrader 4 vs MetaTrader 5 – which is the better platform?
Bitcoin bounces back: Is buying the dip worth the risk?

Bitcoin bounces back: Is buying the dip worth the risk?  Bitcoin has recovered some of its losses following its fall from a record high of $65,000. Considering the crypto king’s astonishing performance in 2021, should …

Read More →
˄