Coming Up Today (all times GMT)
- GBP Manufacturing PMI (08:30)
- CAD BOC Overnight Rate (01:00)
- USD ISM Manufacturing PMI (02:00)
Economic numbers overnight put a hamper on hopes for a relief rally in the immediate future. Many investors and traders are on the sidelines as major institutions and central banks assess the potential damage of the most recent correction in global markets. China manufacturing activity slowed in May while cyclical sectors continue to weigh on equity indexes. The US dollar and gold have emerged as the safest bets in the immediate future, with both benefiting from the flight from risk.
The EURUSD hasn't been able to recover from the overarching negativity concerning the sovereign debt of its member nations. Any hint of a recovery in the price action is immediately followed by an ugly sell off supporting the case that all attempts at recovery are simply new opportunities to short the struggling currency
The Australian dollar took another hit on the chin overnight, closing off a horrendous month in which it dropped over 8 percent; its worst monthly showing since January 2009. Generally speaking, the Aussie has suffered proportionally to the loss in risk appetite globally and will likely continue to do so barring a major change in consumer and investor sentiment.
Support/Resistance 0.8195 0.8420