The euro (EUR) commenced the week looking slightly fatigued by last week’s rise, following the unanticipated decisions taken during the latest EU summit. Nevertheless, this week is likely to prove itself at least as important. Today and on Wednesday, a series of Purchasing Managers’ Index (PMI) releases will showcase eurozone’s economic health. Furthermore, the European Central Bank (ECB) policy decision is due on Thursday and market participants are expecting a rate cut to 0.75%. Also, Eurozone finance ministers will meet again over the coming week. Finally, taking into consideration developments in the rest of the world, investors should await for a volatile string of sessions.
The US dollar (USD) appears stronger as markets open ahead of this week’s Independence Day bank holiday on Wednesday, July 4th and the non-farm payrolls (NFP) release on Friday. The Japanese yen (JPY) has been rising against the US dollar after the EU summit resolutions but it is very important to break and hold on above 80.00 for the pair’s upside potential.
Oil opened at 84.61 dollars a barrel from 84.67. Gold (XAU) opened at 1598.25 US dollars an ounce from 1596.94. Against the euro, gold rose to 1261.52 from 1247.68 an ounce. Silver (XAG) opened at 27.5226 dollars an ounce from 27.4365. Stay in tune throughout the day with foreign exchange bulltes!
OUTLOOK
| Pivot | Preference1 | Sentiment2 | |
| EURUSD | 1.2525 | LONG @ 1.2525 | 44% of deals buy EUR |
| USDJPY | 80.00 | LONG @ 80.00 | 77% of deals buy USD |
| GBPUSD | 1.5600 | LONG @ 1.5600 | 48% of deals buy GBP |
| AUDUSD | 1.0130 | LONG @ 1.0130 | 44% of deals buy AUD |
| GOLD | 1607 | SHORT @ 1607 | 63% of deals buy GOLD |
| OIL | 82.00 | LONG @ 82.00 | 55% of deals buy OIL |
access extensive market analysis 1data generated by Trading Central™, 2data obtained from easy-forex Inside Viewer™
Calendar
| Currency | Time (GMT) | Event | Forecast |
| USD | 07:15 | Retail Sales y/y in May | 5.0% |
| EUR | 09:00 | Unemployment in May | 11.1% |
| USD | 14:00 | ISM Manufacturing in June | 52 |
AUDJPY
The Australian dollar (AUD) managed to perform a rebound against the Japanese yen (JPY) over the past week, and carried on with its monthly uptrend. The pair dropped to 79.31 on Monday and whipsawed for most of the week, but on Friday it managed to rise up to 81.93. This was 262 pips, a weekly rise - in percentage terms - of 3.3%. It will be interesting to see whether the pair will record higher highs.
