The USD is mixed to kickstart the North American session
The USD is mixed and little changed vs the 3 major currency pairs – the EURUSD, USDJPY and GBPUSD – while the AUD and NZD move higher on risk on flows. The video above takes a look at the three major currency pairs from a technical perspective and outlines the bias, the risks, and he targets for each.
The risk on flows have been helped by reports that mediators have proposed a 10-day cessation of strikes between Iran and the United States in an effort to revive talks on an interim agreement, according to a senior Iranian source cited by Reuters. Iranian officials have indicated they remain open to negotiations if they serve the country’s national interests, while continuing to insist that Iran’s sovereignty over the Strait of Hormuz is non-negotiable. The headlines eased fears of an immediate escalation in the region, sending oil prices sharply lower and boosting risk assets.
The price of oil is trading at $80.00 currently. That is down -$1.80. The high for the day extended to $84.60 – the highest level since June 12 four rotating back to the downside. Technically, the price has dipped back below its 100 hour moving average at $80.23. The low price reached to $79.58. The 100 hour moving average will be a barometer for both buyers and sellers. Stay below and we would expect a further move lower with support down at $77.84. Which is near the low price from both Tuesday and Friday. The rising 100 hour moving averages at $76.95 currently.
The UK has a new prime minister Andy Burnham. In his initial remarks as UK PM, Burnham said his government will use public procurement as a key tool to help reindustrialize the UK while maintaining its commitment to fiscal discipline. He announced that new cost-of-living measures will be unveiled tomorrow, pledged to accelerate the construction of council housing, and reaffirmed that his government will honor both its fiscal rules and defense commitments. Burnham also said there will be no change in the UK’s support for Ukraine, adding that his first calls as prime minister will be with U.S. President Trump and Ukrainian President Zelensky.
Taking a look at the market, yields are higher in the US to start the North American session:
- 2year yield 4.189%, +1.7 basis points
- 5-year yield 4.294%, +2.15 basis points
- 10 year yield 4.565%, +2.4 basis points 30 year yield 5.083%, +1.9 basis points
US futures are applying a higher open
- NASDAQ +201 points
- S&P of 17 points
- Dow industrial average of 94 points
Congratulations to Spain for their World Cup victory.
This article was written by Greg Michalowski at investinglive.com.