USDCAD began the week slightly higher reaching as high as 1.2510 but failed to sustain these gains.
Weak data put US dollar under pressure
2020-07-31 • Updated
Ichimoku Kinko Hyo
USD/JPY: The pair has just surpassed the Tenkan-sen level. Further increase of the market will lead USD/JPY towards the Kijun-sen level. A failed attempt to move higher will push the pair below the Tenkan-sen, with further bearish implications.
XAU/USD: Gold is heading towards the previous top and continues to be a bullish bet.
European Market View
The risk of a second wave of coronavirus is more likely to put pressure on rates. Risky assets are supported by fiscal and monetary stimulus.
The US dollar will most likely stay under pressure provided the weak data as well as the political uncertainty (yesterday’s comments from the President regarding postponing the US presidential elections).
GDP data for France, Spain, Italy and Canada are about to be released today. A significant slowdown is expected, as we saw in Germany and US yesterday.
The preliminary EU inflation data for July are expected as well to decline. The US PCE data (for July) are expected to rebound modestly.
Moody’s may update its view on the German sovereign rating. However, we do not expect to see a change to either the outlook or the rating.
European Key Point
- The risk of a COVID-19 second wave
- Weak data put US dollar under pressure
- GDP data for France, Spain, Italy and Canada
- The preliminary EU inflation data for July
- Moody’s may update its view on the German sovereign rating
The US Dollar Index bounced back at the first trading day of the week after a long weekend.
GBP/USD has managed to rise for the third trading day in a row including today’s Asian session, while the daily technical indicators are moving higher gradually.
As we discussed in the previous article devoted to gold, the price is growing extremely fast after a dovish FOMC’s statement…
What happened? Facebook presented an earnings report on July 28…
In our FOMC Meeting live coverage on YouTube yesterday, we sent out a short signal on USD/JPY around 25 minutes after the decision and right before the press conference.