Japan’s holiday joins the pre-Fed blackout to restrict Monday’s market moves and allow the US Dollar to defend the previous day’s corrective bounce off the multi-day low, especially amid upbeat US second-tier data renewing hawkish hopes from the Federal Reserve.
However, the downbeat China growth numbers join the Sino-US headlines to weigh on the sentiment and weigh on the riskier assets, as well as commodities.
It’s worth noting that the China news joins fears of higher Oil output from Libya, due to the restart of a major rig, exerting downside pressure on the Brent Oil and WTI crude oil prices. That said, Gold Price also remains pressured after reversing from the monthly high the previous day.
AUDUSD drops the most as China’s softer GDP figures join comments from Aussie Treasurer suggesting economic woes for the Pacific major. On the other hand, GBPUSD and USDCAD appear mostly unchanged whereas USDCHF bucks the trend while ignoring the US Dollar rebound amid sluggish markets.
Elsewhere, BTCUSD and ETHUSD struggle to defend the first daily gains in four as US Dollar remains dicey and the fears of crypto regulations loom.
Following are the latest moves of the key assets:
Although the US Dollar edges higher and China data confirms growth fears about the world’s second-biggest economy, the market remains unimpressive on Monday amid Japan’s holiday. Adding boredom to the market could be the absence of the Fed officials ahead of the late July FOMC.
Furthermore, China’s Q2 GDP eased but the Industrial Production and the latest shift in the US-China ties, with Washington’s repeated attempts to restore economic partnerships with Beijing, the traders remain troubled and await more signals before marking any major moves. Additionally, the cautious mood ahead of this week’s US Retail Sales and top-tier data from Australia and the UK also prods the momentum traders.
It should be noted that the doubts about the intermediate upper hand of Ripple and Coinbase over the US SEC challenge the cryptocurrency optimists.
New York Empire State Manufacturing Index for June will join a speech from ECB President Christine Lagarde to entertain market players amid a likely dull start of the anticipated sluggish week. Should the US data arrive as positive, the US Dollar may extend the latest recovery while hawkish statements from ECB’s Lagarde need validation from European Commission’s economic forecasts to recall the Euro buyers.
May the trading luck be with you!