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Tuesday, July 11th
The EUR/USD pair recovered part of its overnight retreat by the European opening, as the US dollar corrects slightly lower against its main competitors on Tuesday. During Asia, the pair came under renewed selling pressure after FOMC member J.Williams accelerated bullish run of the US dollar against its main competitors, noting that he expects another Fed rate hike this year. Adding to this, increased demand for higher-yielding assets, which was navigating the market during the Asian session, was also negatively influencing the pair. However, as the market passed over Friday's upbeat NFP print, which increased expectations of another Fed rate hike by the end of this year, the pair managed to regain some pips in early Europe, as investors are still digesting hawkish tone of the ECB President M.Draghi during his recent talks. Today all traders attention will remain focused on the JOLTs Job Openings report, while several Fedspeaks, scheduled on NA session, will also be closely watched for any hints on further Fed steps.
The USD/CAD pair faded its overnight recovery, falling back to the region of its 10-month lows, posted at 1.2860 level after strong data from the Canadian labor market. Seems that US bulls remain unable to perform goodish recovery from its current region, as dust around better-then-expected NFP is slowly settling down, limiting any chances of the pair to recover its positions. Adding to this, recently increased expectations that the BoC might revise its monetary policy to more hawkish are supporting the Loonie, as the Canadian economy continues to show positive results lately and according to the latest remarks of Bank members there is no more need for easing measures. Now traders’ attention shifts towards the bloc of data from both neighbor economies, featuring the JOLTS Job Openings report and several second tier releases, which are scheduled on NA session, while sentiments around oil prices will continue to navigate the pair during European trading hours.
The Kiwi remains the biggest loser across the board on Tuesday, allowing the NZD/USD pair to test its multiweek lows at 0.7225, despite risk-on moods. Seems that NZ bulls barely reacted on better risk-on tone, which was the main driver across the market during the Asian session, as weaker-then-expected data from the NZ economy and underpinned sentiments around the greenback exerted bearish pressure on the pair. However, slightly better sentiments around the oil, seen during Asia, have limited pair’s downside, allowing it to regain some pips in early Europe. Later today, investors will be looking forward for the JOLTS Job Openings data release, while broad market sentiments will continue to drive the pair during this trading session.
The dollar/yen pair remains bullish for the third consecutive session on Tuesday, having refreshed its 4-month tops at 114.48 level earlier this trading session. Seems that yesterday’s poor data from Japanese economy are still weighing on the yen, forcing the pair to stay on a green territory so far this week. Moreover, better sentiments around the US dollar, underpinned by better-then-expected jobs report, and slightly increased risk appetite will continue to cheer up bulls in the session ahead. Today we will have another quiet data session with only the US JOLTs Job Openings report to be released during New York trading hours, so broad market trend will remain as a key driver for the major throughout his Tuesday.
The main events of the day:
US JOLTs Job Openings – 17.00 (GMT +3)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.1362 R. 1.1436
USDJPY S. 113.63 R. 114.49
GBPUSD S. 1.2827 R. 1.2935
USDCHF S. 0.9608 R. 0.9698
AUDUSD S. 0.7574 R. 0.7630
NZDUSD S. 0.7253 R. 0.7293
USDCAD S. 1.2832 R. 1.2960
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