Research & Education

The Pound Sterling remains on a bullish trajectory amid geopolitical developments and political turmoil in the US, while the Relative Strength Index shows signs of exhaustion, hovering above overbought territory. Traders are expected to closely monitor the currency pair in light of the forthcoming release of significant economic data that could potentially impact currency valuations.

The major JPY currency pairs dropped after the Consumer Price Index data, a key indicator of inflation, showed a slowdown in consumer prices. This brought the Fed closer to its 2% target and led to discussions of a rate cut in September. The USDJPY is currently recovering after yesterday's daily range of 433 pips. Traders are expected to keep a close eye on the currency pair due to the upcoming release of significant economic data, including the Producer Price Index, which could impact currency valuations.

The Reserve Bank of New Zealand's less Hawkish statement prompted speculation of a potential interest rate cut later in the year, contingent upon inflationary pressures easing. In response to the Committee's statement, the NZD/USD exchange rate dipped below the moving average line, signaling bearish pressure. Traders are expected to monitor the currency pair in light of the upcoming release of significant economic data that could potentially impact currency valuations.

Gold is taking a breather after hitting the all-time high of $2450.06 per troy ounce on May 20. Despite a subsequent correction, Gold remains on an upward trajectory, as various technical indicators indicate. A potential breakout above the downtrend line will open the way for Gold prices to retest the highest price ever reached. Traders are expected to closely monitor the market in light of the forthcoming release of significant economic data that could impact the commodity's price.

During the Asian session, the EURUSD rebounded from the 161.8 percent Fibonacci Extension in response to Sunday's first round of the French snap parliamentary elections.  Later today, the preliminary Consumer Price Index, comprised of 6 German states that report their CPI throughout the day, is expected to be released.  The preliminary release is the Eurozone's earliest major consumer inflation.  Also, the US ISM Manufacturing Purchasing Managers' Index is due to be released with a potential reading above 50.0, indicating industry expansion.

All eyes are on USDJPY, as the currency pair exceeded the psychological resistance level of 160.00, sparking more rumors of a Bank of Japan intervention.  Analysts speculate that an intervention is only possible after the release of the Personal Consumption Expenditures later today, which is the Federal Reserve's primary inflation measure.

Pound Sterling found support at the thirty-eight percent Fibonacci retracement level ahead of the New Home Sales report, which is due to be released later today. The US Dollar Index indicates a bullish bias, trading above the 105.500 level and the 50-period Exponential Moving Average.

All eyes are on the Purchasing Managers' Index as the EURUSD declines after reaching the highest exchange rate of 1.09161 during the month of June. The PMI, which is due to be released later today, is expected to shed light on the economic health of France, Germany, the UK, and the USA. Traders are expected to closely monitor this currency pair in anticipation of the release of significant economic data that could potentially impact currency valuations.