July 27, 2021
EUR/USD: The European currency rose against the US dollar on Monday. Caution took over financial markets ahead of US important data later in the week. As for the macroeconomic statistics, the German July IFO Business Climate fell as companies revealed less optimistic expectations for the coming months. The US published June New Home Sales, which dropped and was also worse than market expectations. Today the focus will be on the US June Durable Goods Orders that could be up according to the forecast. The local resistance level is seen at 1.1825. A breakout up can trigger growth towards 1.1880.
USD/JPY: The US dollar fell against the Japanese yen on Monday. The pair hesitated between gains and losses, following the lead of US government bond yields. And as a result, the quotes fell as the yield on the 10-year US Treasury posted an intraday low. Japan published the July Jibun Bank Manufacturing PMI preliminary estimate, which contracted more than expected. Today the country published the June Corporate Service Price Index. The reading was better than market expectations. Also, today the Bank of Japan’s Governor Haruhiko Kuroda has an online press conference about monetary policies in Tokyo. The strong resistance level is located at 110.60. If the pair reaches this level and rebounds from it, this can trigger a downside movement towards 110.05.
XAU/USD: Gold fell on Monday and remained depressed for the third day in a row as investors analyzed the week’s key data amid mixed risk-related headlines. While the coronavirus numbers in the UK and Australia calm down market bears, the US flashes mixed readings and challenge the optimists over economic recovery. On a short-term basis, US Durable Goods Orders and Hosing Price Index for June will be important numbers to watch. Should the figures remain softer for June, the Fed will have another reason to reject tapering and back the gold buyers. It’s worth noting that the Covid headlines and updates over US stimulus, not to forget the US-China news, should offer extra filters to gold moves. The local support level can be seen at $1792. If the price reaches this level and rebounds from it, it can trigger an upside movement towards $1824.