The NY session was characterized by month-end mayhem and the moves ultimately proved to be US dollar positive. Equities dropped -0.9% as consumer confidence in the US disappointed in size. Consumer confidence came in at 49.3 while the market was expecting a 55.3 print. This does not bode well for consumer spending going forward and given that it is nearly 70% of the US economic pie, the impact on corporate earnings will not be trivial. Gold lost some of its luster and shed -$11 to 927/926 and now sees important support at the 914/913 trendline – below opens up obvious potential towards the psychologically important 900 level.
Both the return to risk aversion and the month-end flows provided a recipe for USD strength. EUR/USD shed more than 100 pips into the 1.4030 area after finding support once again into the 1.4000 area. The 1.4070/80 zone will be closely watched as a good resistance area as we head into overnight trading. GBP/USD continued to collapse after the false break above 1.6600 overnight. The pair is sitting by 1.6450/60 now and sees important daily trendline support into 1.6340/30. Through there has potential for the 1.6200 next.
Upcoming Economic Data Releases (Asia Session) prior expected
- 6/30 23:30 GMT AU AiG Performance of Mfg Index JUN 37.5 - -
- 6/30 23:50 GMT JN Tankan Large All Indust Capex 2Q -6.60% -6.90%
- 7/1 1:00 GMT US Fed's Yellen Speaks in San Francisco
- 7/1 1:30 GMT AU Retail Sales s.a. (MoM) MAY 0.30% 0.50%
- 7/1 1:30 GMT AU Building Approvals (MoM) MAY 5.10% 3.00%
- 7/1 2:00 GMT NZ Westpac McDermott Miller Employment Confidence
