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MTrading Team • 2023-06-30

EURUSD appears too dicey ahead of Eurozone, US inflation data

EURUSD appears too dicey ahead of Eurozone, US inflation data

Global markets portray the typical pre-data inaction as traders prepare for the top-tier inflation clues from Europe and the US. Adding chains to the momentum are mixed concerns about China and fears of Japan's intervention.

With this, the US Dollar and the Euro both remain mostly inactive but NZDUSD cheers the absence of major disappointment from China and upbeat sentiment data at home. Further, AUDUSD also benefits from the cautious optimism in the Asia-Pacific region whereas USDCHF remains lackluster despite upbeat Swiss data.

USDCAD fails to cheer firmer Oil prices while Gold remains on the back foot at the lowest levels in three months.

Elsewhere, BTCUSD and ETHUSD defend the previous day’s recovery moves amid heavy long positions of major Bitcoin holders and one more addition to the list of BTC ETF filling list. Further, the UK’s passing of a bill to boost crypto adoption in Europe also underpins the upbeat performance of the key e-assets. However, the fears of strong US inflation and higher rates keep the bulls in check.

Following are the latest moves of the key assets:

  • Brent oil rises for the third consecutive day to $74.80 by the press time.
  • Gold price remains depressed after three-day downtrend, lackluster near $1,906 at the latest.
  • USD Index also appears tepid around a two-week high marked the previous day, inactive near 103.30 as we write.
  • Wall Street closed within positive territory but Asia-Pacific shares edged higher. That said, equities in Europe and UK are mildly bid of late.
  • BTCUSD and ETHUSD print minor gains to around $30,700 and $1,880 by the press time.
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Momentum traders struggle amid mixed sentiment

Traders want to confirm a slew of central bankers’ statements suggesting higher rates from today’s Eurozone and the US inflation numbers and hence the anxiety before the data keeps prices grinding, despite holding the weekly trend intact.

The same joins mixed concerns about the US-China ties and fears that the recession woes for the UK and Germany real to add an extra filter to the trading moves.

As a result, Germany’s upbeat Retail Sales and firmer UK GDP fails to impress the market players much.

It should be noted that the majority of the central bankers who spoke at this week’s ECB Forum defended the restrictive monetary policies but said nothing new and hence raise doubts about their capacity to lift the rates much further.

On a different page, equities grind higher and so do the cryptos amid mostly positive industry news and the quarter-end positioning.

  • Strong buy: USDCAD
  • Strong sell: ETHUSD, GBPUSD, Gold
  • Buy: USD Index, Nasdaq, USDJPY

Eurozone HICP, CPI and US Core PCE Price Index are the key

Moving on, market players will keep their eyes initially on the Eurozone HICP and CPI inflation numbers before closely watching the US Core PCE Price Index, known as the Fed’s favorite inflation clue. Also important will be the Canadian GDP and some central bankers’ speeches. Should the scheduled inflation numbers suggest heavy price pressure, the US Dollar will end up posting the second weekly gain and weigh on the other riskier assets like Gold, equities and AUDUSD.

May the trading luck be with you!