Citigroup Earnings Aid Dollar
U.S. Dollar Trading (USD)
U.S. Dollar Trading (USD) had a relatively quiet trading day with little economic data out, equities and commodities directed the market. Citigroup’s earning came in better than expected leading to an overall buoyant mood on the equities markets and dollar. Cooling Middle Eastern tensions allowed Oil to slip again slightly, also helping dollar sentiment. In the U.S. share markets, the NASDAQ was down 29 points (1.28%) and the Dow Jones was up 49 points (0.44%). Crude Oil closed down $0.41 ending the New York session at $128.88 per barrel. Looking ahead, June National Activity Index is released along with the June Leading indicators seen at -0.1%.
European Euro
The Euro (EUR) traded at day highs after June German PPI came in stronger at 0.9% vs. expectations of 0.7%. The Euro was unable to hold these gains in the face of general USD strength but regained the 169 level on the EUR/JPY. Overall the EUR/USD traded with a low of 1.5807 and a high of 1.5886 before closing the day at 1.5845 in the New York session.
Japanese Yen (JPY)
The Japanese Yen (JPY) lost ground against most currencies as investors sought to take advantage of renewed risk appetite as US banks reported better than expected results. Overall the USDJPY traded with a low of 105.97 and a high of 106.94 before closing the day around 106.91 in the New York session. Looking ahead, Public holiday in Japan Today.
Pound Sterling (GBP)
The Sterling (GBP) traded in a slightly offered tone due to Dollar strength and rumors of a relaxing of Government Public debt guidelines. Strong buying of GBP/JPY supported. Overall the GBP/USD traded with a low of 1.9909 and a high of 2.0020 before closing the day at 1.9985 in the New York session.
Australian Dollar (AUD)
The Australian Dollar (AUD) lost ground as Gold and Oil continued to retrace gains but was supported buy continued demand for the high yielder especially against the JPY. Overall the AUD/USD traded with a low of 0.9702 and a high of 0.9739 before closing the day at 0.9705. Looking ahead, 2nd Quarter PPI is seen at 1.6% slightly lower than 1.9% in the first Quarter.
Gold
Technical Analysis: Foreign Exchange News Today
Euro (EUR)
Euro – 1.5845 : Initial support at 1.5765 (July 11 low) followed by 1.5612 (July 7 low). Initial resistance is now located 1.5948 (July 16 high) at followed by 1.6038 (July 15 High).
Yen (JPY)
Yen – 106.85 : Initial support is located at 104.76 (July 17 low) followed by 103.78 (July 16 low). Initial resistance is now at 107.09 (July 17 high) followed by 107.76 (July 7 high).
Pound Sterling (GBP)
Pound – 1.9935 : Initial support at 1.9907 (July 18 low) followed by 1.9815 (July 14 low). Initial resistance is now at 2.0097 (July 16 high) followed by 2.0157 (Jul 15 high and 76.4% retrace of 2.0398-1.9363).
Australian Dollar (AUD)
Australian Dollar – 0.9725 : Initial support at 0.9675 (July 17 low) followed by 0.9664 (July 14 low). Initial resistance is now at 0.9818 (July 16 high) followed by 0.9849 (July 15 High)
Gold (XAU)
Gold – 958 : Initial support at 950.50 (Jul 18 low) followed by 947.88 (Tread line support). Initial resistance is now at 978.5 (July 17 high) followed by 988.0 (July 15 high).
