The negative sentiment in global stock markets at the beginning of the week supported the USD in its usual inverted correlation - marking it a "safe haven currency." But as we have seen many times this year, the whole thing relates only to one aspect: Will the U.S. economy recover first and therefore suffer first by inflation from the massive monetary and fiscal expansion? Most probably, as the current economic data shows. Short term, it needs only a recovery in the stock market to put a further lid on the Greenback. And such a recovery is in the cards this week - as there are no further bad financial / economic reports expected.
In today‘s trading, we expect a downward correction of the USD in the major pairs, as explained in detail below. More positive numbers for the economy are expected again in today‘s U.S. economic publications, which will most probably ignite further pressure on the USD. Market-moving indicators for today are May‘s producer price index, housing starts and buildng permits at 14:30 CET, and industrial production / capacity utilization also for May at 15:15 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The heavily oversold position of the pair is about to be corrected this European morning, with the market currently trading at 1.3890, after recovering from lows around 1.3750. We see this recovery continuing today, first with some down corrections to the 1.3850 levels, and then rising to 1.3950.
GBP / USD
The pound is rallying against the dollar in early European trading, heading to the 1.6500 handle level, and is currently priced at 1.6430. We see the 1.6500 resistance being broken today, bringing cable to 1.6590.
USD / CHF
The selling tone in the dollar against the Swiss franc is continuing in early European trading, with the market currently priced at 1.0850. We expect the bearish tone for the USD today to remain, leading the market eventually to the 1.0780 mark.
USD / JPY
After a weak Asian session, the dollar started to recover in early European morning trading, in one of its typical countermoves compared to other currencies. Currently trading at 96.70, we expect this upmove to continue today in low volatility, to a maximum of 97.20.
In today‘s trading, we expect a downward correction of the USD in the major pairs, as explained in detail below. More positive numbers for the economy are expected again in today‘s U.S. economic publications, which will most probably ignite further pressure on the USD. Market-moving indicators for today are May‘s producer price index, housing starts and buildng permits at 14:30 CET, and industrial production / capacity utilization also for May at 15:15 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The heavily oversold position of the pair is about to be corrected this European morning, with the market currently trading at 1.3890, after recovering from lows around 1.3750. We see this recovery continuing today, first with some down corrections to the 1.3850 levels, and then rising to 1.3950.
GBP / USD
The pound is rallying against the dollar in early European trading, heading to the 1.6500 handle level, and is currently priced at 1.6430. We see the 1.6500 resistance being broken today, bringing cable to 1.6590.
USD / CHF
The selling tone in the dollar against the Swiss franc is continuing in early European trading, with the market currently priced at 1.0850. We expect the bearish tone for the USD today to remain, leading the market eventually to the 1.0780 mark.
USD / JPY
After a weak Asian session, the dollar started to recover in early European morning trading, in one of its typical countermoves compared to other currencies. Currently trading at 96.70, we expect this upmove to continue today in low volatility, to a maximum of 97.20.
