The much-anticipated testimony from Fed Chair Jerome Powell happened on Wednesday. As widely speculated, Powell made the case for a rate cut.

This sets the stage for the July Fed meeting where interest rates could be lowered. Following Powell’s comments, the FOMC meeting minutes also hinted that the case for an accommodative monetary policy was more appropriate. The S&P500 pushed higher to test the 3000-mark by Wednesday’s close.

 

Euro Rebounds on a Weaker USD

The common currency posted strong gains on Wednesday as the USD fell. On the economic front, French industrial production jumped 2.1% in May, marking the biggest increase since May 2016. Similar gains were seen in Italy’s industrial production figures as well, which grew 0.9% on the month. The European Commission released its economic forecasts where it lowered eurozone growth to 1.2% for 2019.

Will the EURUSD Maintain the Bullish Gains?

The currency pair reversed just a few pips off the 1.1188 level of support. The reversal pushed prices higher as the EURUSD closed above 1.1250. If the bullish momentum is maintained, we could expect the euro to rise toward 1.1400 level of resistance. However, in near term, dips to 1.1250 will see support being formed.

EURUSD

 

WTI Crude Oil Jumps on EIA Report

Crude oil prices closed above $60 a barrel on Wednesday. The gains came after the Energy Information Administration released the weekly inventory report. Data showed that US crude oil stockpiles fell 10 million barrels per day. The drawdown was larger than expected. It also reflected the API’s inventory report released earlier in the week. Meanwhile, a developing weather disturbance near the Gulf of Mexico is also seen adding to the price gains.

Can Crude Oil Rise Further?

The current gains in oil prices came after price had initially declined. Following a period of consolidation near the support area of 57.50, oil prices have reversed direction. The strong gains off the 50.57 support level have led to oil testing the upper end of the range. A breakout above the $61.00 handle will further confirm the upside bias in oil.

WTI

 

Gold edges Higher on Powell Comments

The precious metal posted gains on Wednesday after the Fed Chair Powell hinted that the Fed was ready to cut rates. He cited the economic uncertainty but said that the federal deficit could potentially push interest rates higher.

Will XAUUSD Maintain the Gains?

The gains came after the precious metal was hovering close to the 1384 handle, following the break of the rising trend line. But the comments from the Fed Chair saw the precious metal reversing direction. After breaking past the resistance level of 1404, gold prices could be on track for further gains. The next upside target is seen at the previous highs at 1432.

Gold

This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.

Authors' opinions do not represent the ones of Orbex and its associates. Terms and Conditions and the Privacy Policy apply.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD remains depressed but off daily lows

The EUR/USD pair is recovering from a daily low of 1.1216, although holding in negative territory for the day. US preliminary Michigan Consumer Sentiment Index improved by less-than-anticipated in July, coming in at 98.4 vs. the 98.5 expected.

EUR/USD News

GBP/USD trading marginally lower daily basis but above 1.2500

The Pound gave back some of its Thursday’s gain on dollar’s relief. The GBP/USD pair broke a daily descendant trend line coming from June’s high and holds above it, leaving little room for sellers to act.

GBP/USD News

USD/JPY: bears pausing, still in control

Japanese National Inflation steady at 0.7%YoY in June. US Michigan Consumer Sentiment Index expected at 98.5 in July. USD/JPY corrective advance falling short of signaling an interim bottom in place.

USD/JPY News

Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more

Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News

Majors

Cryptocurrencies

Signatures