• Indices initially took their lead from the Wall Street bounce which saw the ASX200 hit its highest level since 2007. Yet Chinese equities turned lower with Bitcoin with no immediate driver at hand. Reports then surfaced that that China have “little interest” in trade talks with the US, and they’ve been playing “little tricks” (such as blacklisting Huawei).
  • Bitcoin plummeted 7% nearer the end of the session during its worst session since February. Stopping just shy of $6900 (some exchanges quoted it a lot closer to $6000 at the session low), there’s plenty of time for it to hit double digits to the downside.
  • Yield differentials continued to weigh weight on AUD/USD which sits below 69c, after seeing its lowest daily close since January 2016 yesterday. Keep in mind Australia’s federal election this weekend so we could see some gaps on Monday depending on the outcome.
  • Narrow ranges for FX overall but NZD and EUR are currently the strongest majors and GBP is the weakest. Eyes are on EUR/GBP to see if it can rack up a 10th consecutive bullish close ahead of the weekend.

 

CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD looks south as markets scale back Fed rate cut bets

EUR/USD risks falling below key support at 1.1193 as markets seem to have scaled back expectations of Federal Reserve (Fed) rate cuts in the overnight trade. Technical set up favors the bears.

EUR/USD News

GBP/USD: Recovery underway as traders await UK CPI for fresh direction

A minor correction in the US dollar across its main competitors appears to prompt a recovery in GBP/USD from 27-month lows, as the rates hold above the 1.24 handle ahead of the UK CPI data. Hard Brexit woes to remain in play.

GBP/USD News

USD/JPY rejected at 200-hour MA amid losses in Asian equities

USD/JPY is currently trading near 108.15, having faced rejection at the 200-hour moving average of 108.33 earlier today. The JPY is bid, possibly due to losses in equities. Also, Fitch Ratings' affirmation of Japan's rating at 'A' buoys the Yen.

USD/JPY News

UK CPI Preview: Brexit above all else

The monthly change in the consumer price index is expected to be flat in June down from 0.3% in May. The annual rate is predicted to be unchanged at 2 %. The core CPI rate is forecast to be flat in June, after gaining 0.2% in April.

Read more

Gold: Bulls are in the safe-zone, but are barely holding on

The 1400 psychological level is holding up which is just as well for the bulls, as a couple of dollars, a break of the 23.6% Fibo of the latest swing lows and highs could open up an onslaught to the downside.

Gold News

Majors

Cryptocurrencies

Signatures