July 09, 2021
EUR/USD: The European currency rose against the US dollar on Thursday after the European Central Bank set a new inflation target at 2% in the medium term. Macroeconomic statistics have missed expectations. The German Trade Balance posted a modest surplus of €12.6 billion in May, while Initial Jobless Claims in the US resulted in 373 thousand in the week, both worse than expected. The local resistance level can be seen at 1.1860. If the pair reaches this level and rebounds fromot, it can be a trigger for a downside movement towards 1.1790.
USD/JPY: The US dollar fell against the Japanese yen on Thursday due to yen gains on its safe-haven appeal amid risk aversion. The dismal sentiment was triggered by rising concerns about the global economic slowdown and mounting demand for safe-haven government bonds. News coming from Japan was negative, as the Prime Minister declared an emergency for Tokyo amid resurgent coronavirus infection. The measure will run through to August 22, and the Tokyo Olympics will be held without public. Additionally, the Bank of Japan is reportedly expected to cut the growth forecast for this year as a result of covid-related restrictions. The central bank is scheduled to meet next week. Japan published the May Trade Balance, which posted a modest 2 billion yen surplus, well below the previous 289.5 billion yen. The local resistance level can be seen at 110.00. If the pair reaches this level and rebounds, it can be a trigger for a decline towards 109.40.
XAU/USD: Gold prices fell a little yesterday after the US Treasury yields rose from their lows. The resurgent demand for the US dollar amid risk-averse market conditions, in light of rising coronavirus cases in Asia and the Fed’s tapering expectations, weighs negatively on the USD-denominated gold. We are not expecting high volatility in gold today. The local support level can be seen at $1795. A breakout below could take the metal towards $1775.