US GDP came in a bit below expectations: in Q2 American economy rose by 2.3% (forecast +2.6%). US economic growth is high enough to show that the US economy has strengthened after the weaker Q1. GDP change in Q1 was revised up from -0.2% to +0.6%. The number of unemployment claims was as expected (267K), below 2015 average that is a good thing.
US dollar should remain mostly supported after the releases as the expectations of the upcoming Federal Reserve rate hike remain well in place. On Friday America will release Chicago PMI (13:45 GMT) and revised consumer sentiment (14:00 GMT). However, gains in USD can be rather small on Friday as traders will be tired after previous volatile days, and some other currencies will put up a fight against the greenback.
For instance, after forming a shooting star candle on Wednesday GBP/USD managed to stay in the 1.5600 area. Still, the inability of the bulls to overcome resistance at 1.5700 shows their weakness. Below the trendline support at 1.5520 the decline will proceed to 1.5460 and 1.5400. No news will come out of the UK on Friday.
EUR/USD slid towards 1.0910. Further support is at 1.0870 and 1.0820 (bottom of the 3-month range). According to the article released in Financial Times the IMF won’t take part in Greek third bailout at this point because of the nation’s high debt and the history of reform failures. That’s a bad news for the single currency. In the euro area watch for flash inflation figures at 09:00 GMT.
USD/JPY almost reached 124.60. Support is at 123.70 and 123.00. Above 124.50 the pair may gather strength for an advance to 125.00 and 125.85, but the way up won’t be easy.
AUD/USD reached target at 0.7260 (minimums of the beginning of the week). Australia will release producer price index at 00:30 GMT. Aussie’s decline has slowed down and is accompanied by consolidation. Support is at 0.7200, while resistance lies at 0.7300 and 0.7350.
US dollar should remain mostly supported after the releases as the expectations of the upcoming Federal Reserve rate hike remain well in place. On Friday America will release Chicago PMI (13:45 GMT) and revised consumer sentiment (14:00 GMT). However, gains in USD can be rather small on Friday as traders will be tired after previous volatile days, and some other currencies will put up a fight against the greenback.
For instance, after forming a shooting star candle on Wednesday GBP/USD managed to stay in the 1.5600 area. Still, the inability of the bulls to overcome resistance at 1.5700 shows their weakness. Below the trendline support at 1.5520 the decline will proceed to 1.5460 and 1.5400. No news will come out of the UK on Friday.
EUR/USD slid towards 1.0910. Further support is at 1.0870 and 1.0820 (bottom of the 3-month range). According to the article released in Financial Times the IMF won’t take part in Greek third bailout at this point because of the nation’s high debt and the history of reform failures. That’s a bad news for the single currency. In the euro area watch for flash inflation figures at 09:00 GMT.
USD/JPY almost reached 124.60. Support is at 123.70 and 123.00. Above 124.50 the pair may gather strength for an advance to 125.00 and 125.85, but the way up won’t be easy.
AUD/USD reached target at 0.7260 (minimums of the beginning of the week). Australia will release producer price index at 00:30 GMT. Aussie’s decline has slowed down and is accompanied by consolidation. Support is at 0.7200, while resistance lies at 0.7300 and 0.7350.
Recommended Content
Editors’ Picks
AUD/USD gains momentum above 0.6500 ahead of Australian Retail Sales data
AUD/USD trades in positive territory for six consecutive days around 0.6535 during the early Asian session on Monday. The upward momentum of the pair is bolstered by the hawkish stance from the Reserve Bank of Australia after the recent release of Consumer Price Index inflation data last week.
EUR/USD: Federal Reserve and Nonfarm Payrolls spell action this week
The EUR/USD pair temporarily reconquered the 1.0700 threshold last week, settling at around that round level. The US Dollar lost its appeal following discouraging United States macroeconomic data indicating tepid growth and persistent inflationary pressures.
Gold trades on a softer note below $2,350 on hotter-than-expected US inflation data
Gold price trades on a softer note near $2,335 on Monday during the early Asian session. The recent US economic data showed that US inflationary pressures staying firm, which has added further to market doubts about near-term US Federal Reserve rate cuts.
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Week ahead: Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.