In Fx, the USD continues to lose ground as we see e the USD Index for June, a measure of the strength of the USD against a basket of currencies, fail, for the second time, to break the 102.25 resistance level as bears have retaken control to now test the 101.25 support level. Yesterday’s testing of resistance was supported by an improved risk sentiment in markets which also so the JPY weaken across the board while the GBP and EUR gave back some of their early gains against the greenback. Today sees the release of key data form the USA, Canada and NZD. Markets will be looking to the data in a bid to ascertain whether the respective countries are seeing improved economic conditions or not. A better than expected release will see the respective currencies strengthen while worse than expected releases will see the respective currencies weaken.
In Commodities, gold continuous to be driven higher as we see USD weakness and a general return to risk on sentiment. The precious metal managed a test of the 1295 resistance level before profit taking by bulls and speculative selling by bears saw a drop back to the 1280 support level. As it stands, bulls will be looking for further instability in geopolitical matters and a weaken of the USD as support for attacking the key 1300 handle while bears will look to capture 1280 in a bid to put in a run on the 1250s-support level.
Crude oil continues to squeeze lower after Thursdays test of the $54 mark as we currently see seller dominate, peeking below 53 as oversupply concerns and flailing demand drags the commodity lower. The asset will remain sensitive to supply and demand news along with geopolitical factors which may affect the aforementioned. More certainty will see crude weaken while decreased certainty will see buyer look to retake 54 and beyond.