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Monday, June 26th
The EUR/USD pair regained positive tone on the European opening, as the US dollar remains unable to recover its positions across the market. On Friday, the buck caught fresh offers on the back of dovish talks of FOMC members James Bullard and Loretta Mester, who spoke in favor of less aggressive rate hike in terms of weaker inflation’s growth pace. It is expected that the dovish comments of committee members will continue to remain as a main driver for the market, providing negative impact on the dollar during this trading session. Now immediate focus shifts towards the bloc of macroeconomic releases from the German economy, while later ahead we will have the US Core Durable Goods Orders report and ECB President M.Draghi’s speech at the ‘ECB Forum on Central Banking’ in Portugal, which will be able to bring some fresh trading opportunities during NA session.
The GBP/USD pair is trading on a firm note this Monday, keeping its bullish bias for the fourth session in a row. Today the pair opened with a bullish gap on the back of talks of Brexit Secretary David Davis, in which he showed confidence that the UK and EU will reach a good Brexit deal, as both sides are interested in further beneficial relations. Adding to this, positive risk environment, triggered by oil recovery, is also collaborating with pair’s upside lately. Now focus shifts toward the US Core Durable Goods Orders report, while secondary data releases from the UK will keep investors busy during European trading hours.
The USD/JPY pair is navigating in north direction at the start of this week amid attempts of the greenback to recover its positions. Seems that the dollar has stalled its Friday’s sell-off, backed by dovish comments of FOMC members J.Bullard and L.Mester, who both stated that there is no immediate need to tighten monetary policy, thereby weighing the buck across the board. Moreover, better risk tone is also supporting the pair this Monday, as oil prices extend their recovery path. On the data front, today investors will await for the US durable goods orders data, which are scheduled on the NA session, while the USD price dynamics and risk trends will continue to navigate the pair throughout European trading hours.
The USD/CAD pair stepped out of its tight consolidation range and now is trading in south direction amid strong recovery of oil prices. On Friday, the pair reacted aggressively on worse-than expected Canadian CPI figures, which forced the pair to spike the level of 1.3300. However, USD/CAD failed to keep its positions above 1.33 handle and now is trading near 1.3250 level on the back of softer US dollar, which was weighed by several dovish Fedspeaks last Friday. Adding to this, the Loonie remains supported at the start of this week, as oil prices extends its recovery from its yearly lows, posted last week. Looking ahead, today all eyes will be focused on the US Core Durable Goods Orders data, while oil price action will continue to navigate the pair during this session.
The main events of the day:
US Core Durable Goods Orders – 15.30 (GMT +3)
ECB President M.Draghi speech – 20.30 (GMT +3)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.1119 R. 1.1245
USDJPY S. 111.00 R. 111.56
GBPUSD S. 1.2643 R. 1.2779
USDCHF S. 0.9650 R. 0.9742
AUDUSD S. 0.7516 R. 0.7608
NZDUSD S. 0.7228 R. 0.7322
USDCAD S. 1.3165 R. 1.3359
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