Dollar Remains Soft as China Data Strengthens Commodities
- Dollar remains generally soft as the week starts, edged lower against most major currencies before recovering mildly. Solid data from China, which saw CLSA PMI rose to highest level in a year at 52.8 in June, boosted commodity prices. Crude oil breaches 70 level which in turn gives additional pressure on the greenback. Asian stocks are generally up even though Nikkei closes down 0.04%.
- US GDP data reduced safe haven demand for dollar and investors sought higher-yielding currencies, which means markets were looking for risks. This was in line with the fact that dollar was sold off across the board on Friday.
- Crude oil extended recent rebound and was back to as high as 69.74 & Gold 956.70
- Oil currently up 1.09% and Gold 0.08%
Currency to watch out for: EURUSD & USDCAD
- The EURUSD pivot point is at 1.4175 with a preference to enter into long positions at 1.4185.
- The GBPUSD pivot point is 1.6650 with a preference to enter into long positions 1.6660.
Today's calendar and market movers:
- UK Halifax Housing PriceÂ 8gmtÂ Â Fcast 0.6 Prior -0.5 (Looking for a stronger GBP)
- UK PMI ManufacturingÂ 8:28gmtFcast 47.7 Prior 47.7 (looking for stronger Equity Futures weaker USD)
- US ISM ManufacturingÂ 14:00gmtFcast 46.2 Prior 44.8 (looking for stronger equity mkts weaker USD)
- US Markets closed slightly mixed on Friday when the Dow closed +0.19, S&P500 +0.07 and Nasdaq
- European markets:Â Closed at their lows FTSE -0.50, DAX -0.53 and CAC -0.27
- Asian Markets: Nikkei:-0.04, & Hang Seng +0.62
- US Future Markets: S&P, DOW and the Nasdaq are currently positive indicating for a positive US equity market open later today.Â