Thus far, it has been a chaotic U.S. session. Equities are attempting to rebound after an early plunge. At press time, the DJIA is down over 375 points and the S&P 500 is off 30. The USD is producing mixed returns. Gains against the Canadian dollar and Euro have been offset by weakness against the Japanese yen and Swiss franc. All in all, it has been an active day on the markets.
With the institutional traders back from the extended U.S. holiday weekend, heavy participation has been the order of the day. The next 24 hours are likely to bring even more action across many asset classes.
Below are several news items to watch for the next 36 hours:
New Zealand RBNZ Financial Stability Report, Governor Orr Speech
Germany Retail Sales (MoM, April), CPI (YoY, May)
Switzerland ZEW Survey-Expectations (May)
Eurozone Business Climate (May), G7 Meeting
U.S. Core Personal Consumption (QoQ, Q1), GDP Annualized (Q1)
Canada BoC Interest Rate Decision
It is poised to be a crazy week on the markets, so buckle up. With this many primary events scheduled, opportunity will be afoot. Be sure to stay tuned to FX Leaders for trading signals and analysis as these events unfold.
June gold futures are showing signs of life after losses from last Friday and the abbreviated Monday session. Bullion is in position to form a green candle on the daily timeframe after a test of topside resistance.
Here are the levels to watch for the remainder of the U.S. session:
- Resistance(1): Bollinger MP, 1306.5
- Resistance(2): Daily SMA, 1309.3
- Support(1): Psyche Level, 1300.0
- Support(2): Swing Low, 1281.2
Overview: As of this writing, June gold futures are entering consolidation around the 1300.0 handle. From a practical standpoint, it is a big round number and likely to attract heavy interest going into tomorrow’s economic data releases. Be on the lookout for today’s futures trade to close near this level.
U.S. GDP is going to be the primary economic event for the coming session. If it comes in beneath expectations, look for an extension of risk-off sentiment to creep into the markets. Between the strife in Italy, lagging U.S. equities, and a weak U.S. GDP figure, gold has the potential to break out above daily resistance in the coming 36 hours.