Equities sell-off paused after Wall Street's opening putting on pause the risk-off mood. High-yielding currencies bounced modestly but remain in the red for the day, with EUR/USD trading below 1.1600.
A draft from June EU summit indicating that "no substantial progress" was made on the Irish border adds to Pound weakness, GBP/USD barely holding above a fresh yearly low of 1.3150.
The USD/JPY pair tried to recover some ground but stalled short of the key 110.15 level, now back below 110.00 as equities hold near daily lows, yields can't recover.
The Crypto market saw 12B/$ in new investments yesterday after some positive market commentaries. This money inflow arrives at the right time to help the main Cryptocurrencies to abandon the critical levels they reached last week.
Ripple, the third largest coin by market value, is changing hands at $0.5388, off Monday low at $0.5112. The coin is 3.5% higher on daily basis, but mostly unchanged since the beginning of the day.
The cryptocurrency market opened the second week in a row in declines. However, the bulls in the market said no to the extended selling pressure in the afternoon (GMT) trading session on Monday.
Bitcoin Cash price is subtly bullish on Tuesday following the brief sharp correction that occurred during the session yesterday. The crypto is forming a short-term bullish flag pattern pending another upside breakout that might have it trading above the upper supply zone at $900.
The ECB executive board member and the ECB chief economist Peter Praet is chairing Panel “Macroeconomics of price and wage-setting” at ECB Forum on Central Banking in Sintra, Portugal at 11:00 GMT.
The US building permits are seen falling -1.4% m/m in May while housing starts are expected to rise 1.4% m/m.Read Full Report
A hawkish Fed and a dovish ECB made the EUR/USD pair collapse toward weekly lows
What a week! Things moved in slow motion until Thursday across the FX board, but intense headlines kept coming pretty much since the week started. The dollar refused to surge despite encouraging local data, as speculative interest wanted to asses all the first-tier events before making up their minds one way or the other.
Another defeat for the UK government in the House of Lords and the reports that the US wants to impose new tariffs on $200 billion worth of Chinese goods weighs on Sterling. Where can it fall to?
The Technical Confluences Indicator shows that the area of 1.3200-13210 is an area of struggle for GBP/USD as it is the convergence of the one-month low, the one-hour low, the Pivot Point one-day Support 2, and other lines.
Should the pair lose this level, support lines are few and far between. Substantial support is only at 1.3078 which is the confluence of the Pivot Point one-week Support 2 and the potent Pivot Point one-month Support 1.
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