Morning briefing: EUR/USD trades above 1.1300-1.1270

Vikram Murarka Kshitij Consultancy Services

The Dollar Index gained strength after the stronger US Consumer Confidence release at 98. Still, while below 101 the targets of 98-96 are kept open. EURUSD has declined a bit but we retain our bullish view while it trades above 1.1300-1.1270. EURINR is moving within a narrow range of 97.50-96.50. EURJPY can broadly remain within the 160-165 region. USDJPY has risen a bit but can face an immediate resistance at 145. AUDUSD is declining within the 0.650-0.635 range and the Pound if it falls further can test 1.34 on the downside before attempting to rise back. We need to see whether the USDCNY breaks past 7.21 or falls back again towards the support near 7.15 region. The USDINR has risen as anticipated and can extend it further to 85.50-85.75 in the near term. IN IIP data release is scheduled today.

The US Treasury Yields are coming down as expected. There is room to fall further to test their supports. The price action thereafter will need a watch to see if they are bouncing back or not. The German yields have dipped. But support can limit the downside and keep the broader bullish view intact. The 10Yr GoI remains stable. Bias remains bearish to see more fall. Any rise will be capped.

The Dow rose on the fast track of trade tariff talks between the EU and the US after Trump delayed the tariff implementation to 9th July during the weekend. Dow could rise towards 42500-43000. Dax could rise to 25000-25200. Nifty dipped below resistance at 25080. Nikkei has near-term resistance zone of 38000-39000 from where a rejection is possible, while Shanghai can trade within 3340-3400 region for sometime. Only a break below 3340 would be bearish to 3300 or lower in the medium term.

Brent and WTI have dipped and are expected to trade within $67–$63 and $64–$60 ranges, respectively, until a breakout occurs. Gold remains bullish despite dipping to $3,283, targeting $3,400–$3,450, while Silver holds a $34–$32 range below $34. Copper has found support near $4.72 and can rally higher towards $4.80–$4.90. Natural gas stays bullish above $3.50, aiming for $3.80–$4.00.

Visit KSHITIJ official site to download the full analysis

Author

Vikram Murarka

Kshitij Consultancy Services

Vikram has been forecasting, trading and hedging currencies since 1991. Beginning his career as a currency trader in Essar Group, he was managing an FX exposure of $1.2 bln.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold drifts higher to near $5,000 on heightened US-Iran tensions

Gold price holds positive ground near $5,000 during the early Asian session on Friday. The precious metal edges higher as escalating tensions between the United States and Iran boost safe-haven demand. Traders brace for the preliminary reading of US Gross Domestic Product for the fourth quarter, the Personal Consumption Expenditures and the S&P Global Purchasing Managers Index data, which are due later on Friday.

Ethereum: Active addresses halt growth as US selling pressure eases

Ethereum network growth has declined after two months of explosive increase. US selling pressure has eased following an improvement in the Coinbase Premium Index. ETH extends its range-bound move below the $2,107 resistance and above $1,740 .

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.