Daily Market Forecast, July 4, 2017 – EUR/USD, Gold, Crude Oil, USD/JPY, GBP/USD
USD/JPY: Test of Yen Range Likely
The Yen is trading above the 113.00 level against the U.S Dollar. The Japanese currency became weaker late yesterday, but reversed early this morning and gained when it was announced North Korea had conducted another missile test near Japanese waters. The Nikkei Index however has been slightly stronger. The Yen may provide traders an opportunity to test range reversals the remainder of the day.
Gold: Gold Remains Vulnerable
Gold remained vulnerable on Monday and is trading around 1224.00 U.S Dollars an ounce. Concern about potential higher interest rates from global central banks has created the recent setbacks for the precious metal. Traders should presume another volatile day is coming for Gold because of light volumes with the U.S on holidays, which could open the door for an imbalanced market.
EUR/USD: European Data Meets Target
The Euro has slipped slightly from its highs made early yesterday. However the Euro remains comfortably above the 1.13 level against the U.S Dollar. Yesterday’s Manufacturing reports from Europe essentially met their targets, tomorrow Services data will provide additional impetus. Traders may be tempted to look for upside movement from the Euro today against the U.S Dollar.
Crude Oil: Speculators May Believe Crude is Overvalued
Trading in Crude Oil will be light today as the U.S markets go on holiday. However, Crude Oil did put in solid gains on Monday. The commodity is now perched below the 47.00 U.S Dollars a barrel level, which is an area speculators may begin to feel Crude Oil may be too highly valued.
GBP/USD: Pound Falls from Highs
The Pound came off of its highs on Monday. The 1.29 level looks to be support for the Pound against the U.S. Dollar. Yesterday’s poor outcome from the U.K Manufacturing PMI sent a bit of a shockwave through the markets, today Construction data will be delivered.
Yaron Mazor is a senior analyst at SuperTraderTV.
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This article was originally posted on FX Empire