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

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.