USD reverses direction as Gold tumbles

The USDJPY pushes 56 pips higher in a volatile New York session.

Trading floor 2

The US Dollar moved higher against all of its major pairs except for the CAD in late-day trading on Tuesday, gaining the most against the JPY. On the U.S. economic data front, the producer price index increased 0.6% in July on month, topping the 0.3% increase estimate from a decline of 0.2% in June signaling a slight recovery in the economy.

On Wednesday, the July budget deficit is likely to narrow from a June record of -$864.1 billion dollars to -$137.5 billion dollars. Consumer prices are estimated to increase 0.3% on month in July due to higher energy prices (0.7% on Year).

The Euro was bullish against all of its major pairs except for the CAD. In Europe, ZEW survey results of August were released for Germany (current situation at -81.3 vs -69.5, expectations at 71.5 vs 55.8 expected). The U.K. Office for National Statistics has reported ILO jobless rate for the three months to June at 3.9%, vs 4.2% expected.

The Australian dollar was under pressure against all of its major pairs with the exception of the JPY.

Gold dropped 121.14$ (-5.98%) to 1906.2.

VIX index jumped 1.83pt (+8.27%) to 23.96.



The USD/JPY jumped 56 pips to 106.52 in Tuesday's trading. The pair remains inside a bearish channel. Price action is now back above the 20-day moving average. Look for a continuation of the rebound towards 108.10 resistance as long as 105.3 can hold as support.



Source: GAIN Capital, TradingView

Happy Trading

More from Forex

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.