SMM News: Tuesday (July 9) Asia-Pacific session, the dollar index continued to maintain a steady rally, the current intraday peak hit 97.48, and there is further momentum to expand the rally. At present, the dollar has been strong for two consecutive trading days, holding steady since June 25 low 95.84 since the volatile rally.
The continued buying boost for the dollar was mainly due to the unusually strong US non-farm payrolls data on Friday, effectively wiping out the possibility that the Fed (FED) would cut interest rates by 50 basis points at the end of July, while markets still expected the Fed to cut interest rates by 25 basis points in July because of rising unemployment and weaker-than-expected wage growth.
Analysts at MUFG said the Fed was still expected to cut interest rates by 25 basis points this month and that the basic trend in job growth was still weakening. Still, the dollar should continue to strengthen in the short term, given that the downside risks of a sharper rate cut have abated.
At the same time, spot gold within the day struggled to sort out near its lows and is currently trading in the $1393 / oz region after three consecutive days of volatile trading, mainly because strong non-farmers or bulls were careful to continue to sell their holdings.
Next, the focus of the market turned to Federal Reserve Chairman Powell's congressional testimony on Wednesday and Thursday, as well as US inflation data to be released later this week.
At 20: 45 Beijing time on Tuesday, Federal Reserve Chairman Powell will make an opening speech at a stress test meeting hosted by the Boston Federal Reserve.
Powell will then testify before the House Financial Services Committee on Wednesday and the Senate Banking Committee on Thursday. Powell is expected to answer questions about the economy and Fed policy.
In the face of recent pressure from US President Donald Trump, continued slowdown in the global economic growth outlook, and continued international geopolitical uncertainty, markets are increasingly expecting the Fed to start cutting interest rates later this month. Investors are particularly concerned about whether Fed Chairman Powell will send a dovish signal about the rate cut.
And if Powell accidentally says he is in no hurry to cut interest rates, the dollar will be greatly boosted, while major non-US currencies and gold are likely to suffer a heavy sell-off. Vice versa.
Intraday focus, weather vane:
16:00 Italian retail sales after May quarter
16:00 retail sales in Italy in May
20:15 new housing starts in June, Canada
20:30 permit to carry out construction in May, Canada
20:45, Federal Reserve Chairman Powell made an opening speech via satellite at a stress test meeting hosted by the Boston Federal Reserve.
22:10 St. Louis Federal Reserve Chairman Brad delivered a welcome speech at the official Forum of the International Monetary and Financial institutions
Analysis of major currency trends:
Euro: early Tuesday in Asia, the euro opened at 1.1213 per dollar. Within days, the exchange rate accelerated after trading, hitting a low of 1.1204. Technically, the daily chart MACD green kinetic energy column further expanded, random index (KDJ) also fell sharply, indicating that the exchange rate will further extend the decline. Next, the initial support is at 1.1200, and the initial resistance level can be seen at 1.1300.
Sterling: at the beginning of the Asian market on Tuesday, the pound / dollar opened at 1.2511. After a period of narrow trading within a period of time, the exchange rate accelerated its decline and is now at a low of 1.2482. Technically, the daily chart MACD green kinetic energy column slightly expanded, random index (KDJ) continued to fall, indicating that the exchange rate will further expand the decline. Next, the initial support is at 1.2480, and the initial resistance level can be seen at 1.2600.
Yen: the dollar opened at 108.71 at the start of Asian trading on Tuesday. Within the day, the exchange rate extended all the way to a high of 108.88, but then fell back from that point. From the technical point of view, the daily chart MACD red kinetic energy column slightly expanded, random indicator (KDJ) continued to rise gently, indicating that the exchange rate is still facing further room for rise. Next, the initial support is located at 108.00, and the initial resistance level can be seen at 109.00.
Scan QR code and apply to join SMM metal exchange group, please indicate company + name + main business