EU Morning Report - Oil And Gold Slump

U.S. Dollar traders were kept on their toes with resistance met on multiple asset classes and some sharp falls in commodities. July Consumer Confidence forecast fell 3 points to 50.4 but May House Prices increased 0.5% m/m.

The Euro (EUR) the rally continued in Europe but ran out of steam late in the day as Oil losses mounted and stocks failed to extend gains. The EUR/USD closed at the 1.3000 figure with the market trading in a tight range so far this week, EUR/JPY did well but EUR/GBP fell back towards 0.8300. EUR/USD traded with a low of 1.2951 and a high of 1.3047 before closing at 1.2990.

The Sterling (GBP) failed above 1.5500 on its first attempt but broke higher later in the day on good EUR/GBP selling and GBPYen buying. GBPYen broke to multi-month highs above 136 and is targeting 140 in the short term. Overall the GBP/USD traded with a low of 1.5441 and a high of 1.5602 before closing the day at 1.5580 in the New York session.

The Australian Dollar (AUD) was strong, holding above 0.9000 the whole day and testing resistance towards 0.9080 in the US session. AUDYen buying was the major catalyst but the market is eagerly awaiting today's CPI figures before pushing higher still. Overall the AUD/USD traded with a low of 0.8998 and a high of 0.9071 before closing the US session at 0.9020.

Oil & Gold (XAU) Gold pulled back as demand subsided given the multiple failures at $1200. Overall trading with a low of USD$1187 and high of USD $1157 before ending the New York session at USD$1164 an ounce. Oil slid towards $77 on the drop in US consumer confidence. WTI Oil Closed -$0.30 at $78.80 a barrel.

Currency to watch out for: EURUSD & GBPUSD

The EURUSD pivot point is at 1.2955 with a preference to enter into Long positions at 1.2955

The GBPUSD pivot point is at 1.5530 with a preference to enter Long positions 1.5540

Today's calendar and market movers:

GBP BOE Governor Mervin King Speech

USD Core Durable goods orders m/m expected at 0.9%

USD Crude Oil Inventories expected at -1.4m Barrels

Equity Markets:

US equities closed mixed yesterday with the DJIA and the SP500 closing 0.12%% and -0.10% respectively. The European bourses were positive with the FTSE closing 0.27% the DAX and the CAC closing up at 0.21% and 0.83%. The NIKKEI and the HSI at the time of writing is 2.70% and 0.52% respectively.