In the currency trading arena, there's been a notable lack of movement today. Gold has caught the market's attention, sliding past the 1900 psychological level. Yet Dollar remains relatively undisturbed, also showing no significant response to the latest jobless claim data and Q1 GDP final figures. Likewise, the release of higher-than-anticipated German CPI data sparked only a fleeting and mild rally in Euro, lacking subsequent follow-through. Despite today's tranquil conditions, market participants are bracing for potential turbulence tomorrow, as data releases including China's PMIs, Eurozone's CPI flash, and US PCE inflation data are slated. So far this week, US Dollar and Euro are neck-and-neck in the contest for the strongest currency, with Swiss Franc hot on their heels. Australian and New Zealand Dollars are battling it out to avoid the week's weakest currency title, though Canadian Dollar may still swoop in and claim that unenviable status. Japanese Yen finds itself in the middle of the pack, trading within a consolidation range, under threat potential government intervention. British Pound is showing signs of weakness, but any significant depreciation is yet to materialize. Technically, Gold is now quickly approaching fibonacci support at 38.2% retracement of 1614.60 to 2062.95 at 1891.68. Strong rebound from that level, followed by break of 1939.24 resistance, will be the first sign of bottoming, and keep the decline from 2062.95 as a near term correction only. However, sustained break of 1891.68 would raise the chance of trend reversal. Or, at least that would open up deeper fall to 1804.48, and possibly to 61.8% retracement at 1785.86. In Europe, at the time of writing, FTSE is down -0.48%. DAX is down -0.03%. CAC is up 0.44%. Germany 10-year yield is up 0.072 at 2.391. Earlier in Asia, Nikkei rose 0.12%. Hong Kong HSI dropped -1.24%. China Shanghai SSE dropped -0.22%. Singapore Strait Times rose 0.06%. Japan 10-year JGB yield dropped -0.0041 to 0.384. |
