Profit taking stalls Rally!
Weak economic data and a further pull back in Oil led the stock markets lower overnight but the selling was subdued and the sentiment remains positive. The USD continued to range trade against most majors with small gains against commodity currencies.
The Euro (EUR) market orbited the 1.3000 level after failing to break resistance forming at 1.3050. German CPI remained low at 1.1% y/y in July but support was seen from a successful 13yr Portuguese Bond Auction. EUR/USD traded with a low of 1.2951 and a high of 1.3047 before closing at 1.2990.
The Sterling (GBP) broke above 1.5600 in Asia and but was quite range bound from then on in with GBP/JPY weakness stopped further gains and the market lacked little news to work with. Overall the GBP/USD traded with a low of 1.5544 and a high of 1.5641 before closing the day at 1.5595 in the New York session.
Oil & Gold (XAU) Gold consolidated recent losses sticking to a $10 range. Overall trading with a low of USD$1156 and high of USD $1166 before ending the New York session at USD$1163 an ounce. Oil struggled with weekly inventory data showing a 7.3m barrel surged. WTI Oil Closed -$0.30 at $78.80 a barrel.
Currency to watch out for: EURUSD & GBPUSD
The EURUSD pivot point is at 1.2965 with a preference to enter into Long positions at 1.2965
The GBPUSD pivot point is at 1.5565 with a preference to enter Long positions 1.5565
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