By: Easy Forex
U.S. Dollar Trading (USD) was unable to gain on the increase in risk aversion as multiple factors weighed. Oil jumped as US inventories dropped by 3.9M. US Current Account continued to worsen -101B vs. -85B forecast. US CPI jumped up 0.1% in May. Crude Oil closes down $0.56 to close the day at $71.03. In US share markets, the Nasdaq was up 11 points or 0.66% and the Dow Jones was down 7 points or -0.09%. Looking ahead, Philly Fed is forecast at -17 in June.
The Euro (EUR) found support and grinded higher helped by Oil and USD weakness. EUR/GBP was well supported and the market continues to consolidate. Fresh Direction will be found on a break of the 1.3750-1.4150 range. EUR/JPY continues to track market sentiment. Overall the EUR/USD traded with a low of 1.3810 and a high of 1.3976 before closing at 1.3950.
The Japanese Yen (JPY) tested the 96 Yen in early Asia before rebounding as stocks bounced off lows in Japan. AUD/JPY selling and GBP/JPY selling into Europe kept direction choppy. Overall the USDJPY traded with a low of 95.50 and a high of 96.80 before closing the day around 96.40 in the New York session. Looking ahead, BOJ Policy Minutes
The Sterling (GBP) was buoyed off lows in Europe by better than expected UK data and optimistic MPC minutes. Unemployment increased by only 39K vs. 61K forecast. MPC minutes at 9-0 mentioned the recent improvement in data. Overall the GBP/USD traded with a low of 1.6207 and a high of 1.6510 before closing the day at 1.6400 in the New York session. Looking ahead, May Retail Sales are forecast at 0.4% vs. 0.9% previously.
The Australian Dollar (AUD) was extremely choppy with both directions tested. 0.7860 supported and 0.8000 capped. Intraday volatility remained high as the market continues to debate the next move. The mood in the markets is flipping multiple times a day although the daily range is tightening. Overall the AUD/USD traded with a low of 0.7849 and a high of 0.8000 before closing the US session at 0.7940.
Gold (XAU) found support at $930 and the Gold bulls will be looking for a basing and third time lucky test of the $1000 level later in the year. Overall trading with a low of USD$928 and high of USD$943 before ending the New York session at USD$940 an ounce.