Forex Signals Brief June 30: Will Eurozone Inflation Continue to Slow?
The economic data is showing improvement in the USD which is supporting the USD, although let's see the Eurozone CPI and the US Core PCE
Yesterday’s Market Wrap
Yesterday markets were quiet in the Asian and European sessions, despite German and Spanish CPI (consumer price index) inflation showing an increase for this month. In Australia and Japan, we saw an increase in retail sales for last month, which shows that the consumer is alive and well, despite the increasing prices and the high interest rates.
The positive data continued in the US session, with the last reading for the Q1 GDP being revised higher from 1.3% to 2.0%. The unemployment claims also came better than expected, which gave the USD a push across the board. The JPY was one of the weakest currencies, as Japanese officials remain dovish. Later we have the GDP report from Canada which is expected to show a 0.2% expansion April, while the US PCE core price index is expected to tick down to 0.3%.
Today’s Market Expectations
Today we had the Chinese manufacturing and non-manufacturing PMI reports, both of which remained little changed, with manufacturing activity continuing to remain in contraction. The French Prelim CPI inflation showed an increase as well, following yesterday’s jump in German and Spanish CPI, so chances are that we might see higher Eurozone CPI later today, although expectations are for a decline.
Forex Signals Update
Yesterday the volatility picked up in the US session, after the positive economic numbers from the US, which gave the USD a boost. We remained long on the USD as a result, apart from a buy Gold signal which my colleague had opened the previous day. We had four closing signals, three of which hit the take-profit target.
GOLD Sleeping Below $1,900 and Then Reversed Back Up
Gold continues to show weakness, finally breaking below the $1,900 zone. Although there was no continuation and we saw a reversal after the quick fall, so Gold ended up where it started the day. Although the 50 SMA (yellow) continues to work as resistance on the H4 chart, so we are thinking about opening another sell signal here.
XAU/USD – 240 minute chart
Continuing to Cah in on USD/JPY Longs
USD/JPY continues to make solid gains, with the trend being bullish since the end of April and approaching 145. Moving averages, especially the 20-day Simple Moving Average (SMA) represented by the gray line, have acted as reliable support indicators, further validating the strength of the upward trend. As a result, the strategy is to capitalize on any pullbacks in USD/JPY by considering buying positions.
USD/JPY – 240-minute chart
Cryptocurrency Update
BITCOIN Returns Above $30,000 After Dipping Below
Bitcoin turned quite bullish earlier this month as the sentiment in the crypto market improved. BTC/USD surged above $31,000 although buyers haven’t been able to push much higher and we are seeing consolidation, with the price dipping below $30,000 again. But the sellers are weak too right now, so the price is hoovering around this level.
BTC/USD – 4 hour chart
ETHEREUM Breaks the 50 SMA but the 200 SMA Holds
Last week we witnessed a surge in cryptocurrencies, with ETH/USD moving above $1,900. However, it fell short of reaching our take-profit (TP) target, and after some consolidation, the price starts to retreat lower. The 50 SMA (yellow) held as support for some time, but it was broken although the 200 SMA (purple) stopped the decline.
ETH/USD – Daily chart
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