August 03, 2021
EUR/USD: The euro was little changed against the dollar on Monday as markets remained without triggers. The euro showed little reaction to the Purchasing Managers Index (PMI). The reading of July manufacturing was at 62.8, a touch above the flash number of 62.6. Statistics match last week’s data showing inflation shooting past the European Central Bank’s 2% target. The euro strengthened at $1.1871 having risen as high as $1.1900 last week. Immediate resistance can be seen at 1.1910. A breakout up can trigger growth towards 1.20.
XAU/USD: Gold is trading in a narrow range after hitting a high of $1831. The declining bond yields are preventing the yellow metal from further decline. The US 10-year yield slipped below 1.15%, the lowest level since Feb 2021. The US dollar index showed weakness after US ISM data. It came at 59.5 in July compared to a forecast of 60.8. The yellow metal has hit an intraday low of $1809 and is currently trading around $1810. The spread of the Delta coronavirus variant has increased demand for safe-haven assets. If market sentiment does not change, gold could reach $1825.
BRENT: Oil prices fell more than 3% on Monday after weak economic data came out from China and the United States, which are the world’s largest oil consumers. OPEC producers ramped up their oil output raising concerns about weak oil demand and oversupply. At the same time, oil reserves, according to the EIA, continue to decline steadily. Most likely, the local correction is not over yet and we will see oil dip to lower levels.