Market Overview - Euro, Pound, Gold, Stocks - 1st August
EURUSD
Euro growth remains minimal in euro zone & inflation around 5.5%
The trade is stabilizes around 1.1000 level & extends week-start fall to refresh intraday low, approaching short-term key support line.
Immediate support 1.0945 may act as intermediate halts during the EUR/USD fall targeting the previous monthly low of around 1.0830.
On the upper side, a clear break of the 21-SMA level of 1.1025 needs validation from the double tops marked around 1.1050 & break will run the pair 1.1275 can’t be ruled out.
Euro inflation is bearish & US ISM PMI is eyed & limited downtrend is expected.
GBPUSD
BOE expected to hike by 25bps this week & trend favors neither bulls nor bears.
GBP downside seems limited ahead of the BoE on Thursday and the US NFP report on Friday.
GBP remains on defensive mode amid stronger dollar, manages to hold above 1.2800 level.
GOLD
Gold sentiment traders are bearish due to strong US Dollar, yields weigh on gold amid downbeat China PMI, fears of Sino-American tension.
The gold traders are eyed US ISM Manufacturing PMI, JOLTS Job Openings for clues about Friday’s NFP.
Gold trders major attention will be given to the $1,969-70 resistance zone.
If Gold traders manage to cross the $1,970 hurdle, could target surrounding $1,985 which may direct bulls $2,000 psychological level.
STOCKS
Asia pacific shares remain strong amid defense of easy-money policy favor the nation’s equity benchmark.
ASX (Australian Stock Exchange) 200 also jumps around 0.70% on a day as RBA keeps the benchmark interest rates unchanged for the second consecutive week.
S&P500 Futures seesaw near the yearly high, up 0.15% intraday near 4,610 at the latest, trace Wall Street’s gains, yields grind lower ahead of US ISM Manufacturing PMI, JOLTS Job Openings.
Dollar Index (DXY) renews a three-week high as the greenback braces for the US ISM Manufacturing PMI for July and JOLTS Job Opening for June.
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