EUR/USD: asset expects statements from ECB officials
The single currency of the eurozone is trading slightly lower, being in correction, having made attempts to gain a foothold with the onset of the week, allowing the EUR/USD instrument to resume the local maximum of June 10.
At the moment, the market is waiting for an announcement from the European regulator about the launch of a key rate hike cycle, against which the currency pair has secured fundamental support. Recall that on the eve of the ECB President Christine Lagarde allowed the possibility of raising the rate by 25 basis points during the summit announced for July. In addition, the next stage of the indicator increase is scheduled for September. Some analysts are of the opinion that the European regulator does not fully assess the risks of inflation, repeating the mistake of the US Federal Reserve, which for a long period of time considered the strengthening of the cost of consumer goods a temporary phenomenon. In the current conditions, the US regulator is trying to correct the miscalculation by increasing the pace of monetary policy tightening, putting the national economy at risk, provoking the onset of stagflation.
- Resistance levels: 1.0600, 1.0640, 1.0700, 1.0747.
- Support levels: 1.0550, 1.0500, 1.0450, 1.0400.
GBP/USD: the pair is limited in growth due to statistics from the USA
The British currency shows mixed trading dynamics, being in consolidation at 1.2270. The beginning of the trading week did not give the GBP/USD pair any significant trend reversals, allowing the pound only to update the local maximum from June 17.
The instrument was prevented from securing the upward dynamics of quotations by a positive block of data on orders of long-term goods. According to statistics, the May indicator increased 0.7%, increasing by 0.4% last month, surpassing analysts' forecast of strengthening by only 0.1%. The demand for capital goods without calculating the defense and aviation segments also increased to 0.5% from the previous 0.3%. Optimistic sentiment intensified after fixing the number of unfinished contracts for the purchase of residential real estate in the United States. So, in May, their volume sank by 0.7%, after the last decline by 4.0% in April terms, against market estimates of negative trend retention at -3.7%. The annual indicator, meanwhile, continues to remain at a negative level of -13.6%, against -9.1% last month.
- Resistance levels: 1.2328, 1.2400, 1.2457, 1.2500.
- Support levels: 1.2236, 1.2163, 1.2074, 1.2000.
Gold Prices
The value of the precious metal is trading with a slight increase, restoring the losses incurred the day before. The asset's positions reached the 1825.00 mark, while waiting for positive signals in the news background.
A negative factor on the instrument is the growth in the yield of US Treasury bonds, which was fixed at 3.187%, having closed earlier at 3.124% a session earlier. Market participants are trying to assess the prospects of a possible embargo on metal supplies from the Russian Federation, which has already been reported by sources close to the decision-making center. According to insiders, the G7 states are likely to approve a complete ban on the import of the extracted precious metal into the Russian Federation. An additional negative signal for gold was the intention of the world regulators to continue tightening monetary parameters as part of the fight against record inflation in the regions. So, already during the announced meeting for July, the US Federal Reserve announced its readiness to raise the key rate, meanwhile the ECB also gave a comment confirming its determination to start a cycle of increasing the target.
- Resistance levels: 1843.37, 1857.27, 1869.49, 1878.84.
- Support levels: 1828.22, 1816.62, 1800.00, 1775.00.
Oil Market Overview
The price of "black gold" of the Brent reference grade showed a decline following the results of the past week, however, during Friday's trading session it returned upward dynamics, which allowed it to reach the 112.50 mark.
Bidders note two events in the coming days that can make significant changes in the nature of the movement of raw materials on the market. This day, the G7 countries are holding consultations on banning the import of petroleum products from the Russian Federation, at the same time, an option is being considered to introduce a fixation of the cost of energy, which will lead to an increase in the deficit on trading platforms. In case of a positive result of the meeting on these issues, as economists expect, the official Kremlin will be able, on its own initiative, to refuse to supply goods from the eurozone and the United States, refocusing on the markets of Asian regions, which will cause an increase in the cost of raw materials.
- Resistance levels: 112.50, 118.75, 121.88.
- Support levels: 107.90, 100.00, 96.88.