New York Forex Report: US Manufacturing Data On Deck

New York Forex Report: US Manufacturing Data On Deck

New York Forex Report: Following a slippery end to the week for USD which was weighed upon by a non-committal Fed and poor 2Q GDP readings traders now turn their attention to the July employment reports at the top of the week. Kicking off the data today however e have US ISM July Manufacturing at 1400GMT expected to have slipped from 53.2 to 53.

FX Majors: EUR Eurozone, initial estimate showed 2Q GDP halved to 0.3% QOQ, dragged by softer growth in Germany (+0.3% vs +0.7% QOQ) and the weakest growth in six quarters in Spain. This reaffirmed that growth was already slowing ahead of the EU referendum outcome GBP gained more than 1% early in the US session on Friday to 1.3300 for the first time in eleven days, as the greenback dropped sharply across the board after US economic growth data came in much weaker than expected. The latest figures showing British consumer morale suffered its sharpest drop for more than 26 years in July. However it had only little impact on the currency on Friday . JPY BOJ refrained from cutting its interest rate and increasing its annual JGB purchase target. Instead, the BOJ took on a much moderate approach by just increasing its ETF purchase by annual pace of 6 trillion yen (previous: 3.3 trillion yen).

EURUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Technical: Offers above 1.1185 range resistance stall the advance a close above 1.12 opens 1.14 next. Near term support is sited at 1.1120
Retail Sentiment: Bearish
Trading Take-away: Long

GBPUSD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish

Technical: Over 1.3330 shifts attention back to 1.3550 symmetry swing objective.Near term support is sited at 1.3150.
Retail Sentiment: Neutral
Trading Take-away: Neutral

USDJPY
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: The close below 103 will see bears target a retest of cycle lows below 100. Near term resistance is sited at 103.90.
Retail Sentiment: Bullish
Trading Take-away: Short

EURJPY
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: Below 113 opens 110.80 as the next downside objective. Near term resistance is sited at 115.50
Retail Sentiment: Bullish
Trading Take-away: Sidelines

Commodities FX: GOLD hit a near three-week high on Friday after much slower-than-expected US economic growth weighed on the dollar, and was on track for a second monthly gain in a row. Oil prices steadied on Friday following a week-long selloff but were on track to end the month about 15% lower on persistent glut concerns. Both Brent and WTI benchmarks hit April lows on Friday before paring losses on what market participants described as short-covering by investors taking profit on bearish bets placed over the past week. Also on Friday, Baker Hughes reported the number of oil rigs operating in U.S. fields rose by 3 to 374 last week, marking the fifth straight increase in a row. At this time last year, drillers were running 664 rigs. AUD market awaits the RBA meeting due tomorrow. It is widely expected that RBA will cut its policy rate by 0.25% CAD tumbled last Friday despite weak Canada GDP as dollar was weakened due to the weak US second quarter GDP data. Canadian GDP increased 1% in May YoY, worse than the market expectations 1.2%

AUDUSD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish

Technical: Offers above resistance sited at .7570 continues to cap upside attempts. Range resistance is sited at .7676 with range support now at .7400
Retail Sentiment: Bearish
Trading Take-away: Sidelines

USDCAD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish

Technical: Breach of 1.3060 opens 1.2965 symmetry swing support as this level attracts bids expect a further higher to target equidistant swing target of 1.3380
Retail Sentiment: Bullish
Trading Take-away: Sidelines

XAUUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bullish

Technical: 1305 provides a platform to challenge and breach 1360 highs en-route to 1391. Below 1300 opens 1270.
Retail Sentiment: Neutral
Trading Take-away: Neutral

USOIL
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: Breach of bids at 41.87 opens 38.19 as the next downside objective, expect 43.10 prior support to act as resistance, a close over 47.80 required to ease bearish pressure.
Retail Sentiment: Neutral
Trading Take-away: Neutral