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The Euro sold off below parity added to dollar strength amid recession fears. Eurozone PMI data came in mixed showing a contraction in the EU economy. UK PMI data came in mixed in the EU session. The Saudi Arabia Energy Minister says they may cut production if necessary, driving crude oil into positive territory on supply concerns. The hawkish bets on the Jackson Hole symposium held the dollar steady.
EURCAD extended its 9-month slide post mixed preliminary flash PMI data. The German Manufacturing PMI was 49.8 vs 48.2 surveyed, German Services PMI was 48.2 vs 49.0 forecasted, Eurozone Manufacturing PMI 49.7 vs 49.0 and Services PMI 50.2 vs 50.5. Canada’s New Housing Price Index for July fell to 0.1% from 0.2 previous reading on Monday but got a boost from a rally in oil prices on Tuesday. The pair dropped by -0.44% trading below 1.3000, a 9-year low. Key areas to watch out for on the slide are 1.2900 and 1.2880 levels in the near term.
NZDUSD surged by +0.21% on Tuesday as the King Dollar receded its strength. The Kiwi got boosted by an uptick in commodities finding higher ground. The US PMI data and New Home Sales data will be due later in the day along with API Weekly Crude Oil stocks. An extended rally to the upside is capped by 0.6200 while a dip may be challenged by the 0.6150 level before taking 0.6100.
GBPJPY fell -0.15% during the European trading hours following mixed UK PMI data. The Composite PMI fell to 50.9 vs 51.3 expected, Manufacturing PMI came in at 46.0 vs 51.0 and Services PMI appreciated to 52.5 vs 52.0. The Japanese Services PMI fell to 49.2 from a previous reading of 50.3. Risk-off flows on the day helped boost the Yen. The pair dropped after a poke above 162.00 psychological resistance. Critical barriers to focus on to the downside are 160.50 and 160.00 in the short term.
European stocks were trading in a mixed manner during the European trading hours. CAC 40 soared by +0.16% after printing a low at 6320 and faces bullish caps at 6400 and 6450 levels. FTSE 100 was down -0.16% and is seen nursing earlier losses towards 7550 after a bounce at 7480. DAX gained +0.19% and is a touch away from 13340 support-turned-resistance and 13450.
US stock futures traded flat ahead of earnings reports. The DJIA index futures traded flat mid-European trading hours at -0.03% between 32900 and 33200. Further up bulls may reclaim 33500. S&P500 futures were down -0.01% with an intraday low residing at 4120. Bulls may retest 4200 in the near term. Nasdaq100 futures dropped by -0.06% from 12950 and has a low at 12800. The upside move is capped by 13000 while a bearish run may face a challenge at 12500 and 12000.
Gold and Silver took a breather mid-European after a 6-day losing streak. XAGUSD recovered by +0.48% after establishing a low at 18.800 on Monday. A rally above 19.20 may make way for 19.500 and 19.80. A continued slide however may take the precious metal to 18.000. XAUUSD rose by +0.37% after bouncing off $1730. A further slide may take the yellow metal to 1720 and 1680.
