The Euro was trampled by the Dollar today as investors re-evaluated whether the Federal Reserve will cut interest rates in July.
Prices dipped below $1.12 to a three-week low on rising expectations for more aggressive ECB easing following the nomination of IMF Chairwoman Christine Lagarde as the new European Central Bank head. With the EURUSD struggling to keep above $1.12, sellers are likely to exploit this weakness to send the currency pair towards $1.11 in the near term. This bearish setup remains valid for as long as $1.13 proves to be a reliable resistance.
Sterling crumbles to a two-year low as Brexit fears sting sentiment
Sterling has tumbled to its lowest level in six months against both the Dollar and Euro thanks to mounting fears of a no-deal Brexit and repeated signals of slowing economic growth.
Retail sales in the United Kingdom have risen at the slowest pace over the past year as Brexit uncertainty limits consumption. Other risks in the form of political risk and external developments have made the Pound the sick man in the G10 space. The technical picture illustrates a bearish setup with prices trading towards 1.2420. Should this level prove to be strong support, the GBPUSD may end up rebounding back towards 1.2500.
Australian Dollar wins title as weakest G10 currency
The Australian Dollar weakened against the Dollar and every single 10 currency today thanks to disappointing domestic data from Australia.
Appetite towards the Australian Dollar is set to weaken further given how the Reserve Bank of Australia has cut interest rates to a historic low of 1%. Focusing on the technical picture, prices are under pressure on the daily charts. The recent breakdown below 0.6950 signals further downside with the next key level of interest around 0.6900. Should the AUDUSD dip below this point, bears are likely to attack 0.6800.
Gold fights to reclaim $1400….
Gold’s passionate effort to reclaim the $1400 level was sabotaged by a stronger Dollar this afternoon.
The precious metal rebounded towards the $1400 level but failed to push higher as investors re-accessed Fed cut bets. While Gold may face headwinds in the short term, the metal has nothing to worry about in the medium to longer term given the unfavourable global conditions. For bulls to jump back into the game, Gold needs to secure a daily close above $1400.
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