The Bitcoin “death cross” has occurred. The S&P 500 rallied the most in five weeks! Crude oil and gold jumped as the US dollar weakened.
Daily News: the market is waiting for the CB meetings
- The US dollar index broke the psychological level at 95 yesterday. It’s a negative signal for the index as this level was a strong support. Up to now, the index has been trying to recover. Traders will have a look at the CPI data (15:30 MT time). The forecast is encouraging. If the actual data is greater than the forecast, the index will be able to recover. It needs to break above 95.10 level to recover. Otherwise, there are risks of the fall to 94.50 (100-day MA). The NAFTA negotiations will be continued today. Positive news will weaken the USD.
- The euro is weak ahead of the ECB meeting (14:45 MT time). The market is looking for clues on the future monetary policy. If the bank is pessimistic, the euro will go further down. The first support is at 1.16. The next one is at 1.1582. If the bank brings hope, the euro will recover. The resistance is at 1.1632. The next one is at 1.1680. However, the bank needs to be too optimistic to help the pair to break above 1.1632.
- The pound is stronger than the euro ahead of the central bank meeting (14:00 MT time). GBP/USD managed to stick above the resistance at 1.3033. The market is waiting for comments from the BOE to forecast the next rate hike. If the BOE is optimistic, the GBP/USD pair will go further up. The next resistance is at 1.3151. If the bank sounds cautious, the pair will break below 1.3033. The next support is at 1.29.
- The USD/CAD pair has been recovering after the breakthrough of the support at 1.3015. The resistance is at 1.3064. If there is a progress in the NAFTA deal, the pair may turn around. The support is at 1.2963.
- Today’s report from the Australian labor market pushed the aussie to make a switch to growth. According to the news, an unemployment rate has remained at the last month’s 5.3%, while the change in the number of employed people in August was positive and reached a higher than expected level (44.0K vs 16.5K).
Up to now, the AUD/USD pair has been continuing its upward movement. The pair has been rising for the 4 days in a row. The resistance is at 0.7210. The growth is caused by the USD weakness. If the US dollar manages to recover, there are risks of the pair’s reversal. The support is at 0.7155. The next one is at 0.71.
That’s all for today! Follow market news with FBS!
Wednesday will please traders as many economic indicators will be out! The USA, UK, and Euro Area will release PMI reports on June 23 from 10:15 to 16:45 MT.
Last week the USD soared versus other major currencies, while gold headed for the biggest weekly loss in 15 months. Let’s see what new moves await us this week!
US PCE Price Index will be out on Friday at 15:30 MT.
Microsoft joined Apple in the $2 trillion dollar club! Follow PMI reports from the US, UK, and EU throughout the day!
The Bank of England will release its statement and announce its monetary policy decision on June 24 at 14:00 MT.