Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

At the start of the US trading session on Monday, EUR/USD traded in proximity to the psychological 1.1000 level, after registering an intraday low of 1.0971. On Friday the common currency tested lows unseen since March 10th, tumbling to 1.0909 in a response to the shocking vote in the UK.

Monday is to mark the beginning of the global central bank summit in Sintra, Portugal. It became clear that the Fed Chair, Janet Yellen, is not due to participate, after Bank of England Governor, Mark Carney, pulled out during the weekend, following the outcome from the EU membership referendum. Concerns arose that a potential boost in easing efforts from both the European Central Bank and Bank of England may be a complication for Federal Reserves intention to further tighten monetary policy. At 17:30 GMT the ECB President, Mario Draghi is scheduled to speak.

Meanwhile, Danske Bank forecasts a further plunge for the EUR/USD pair to the 1.0700 mark in a period of 3 months on the back of political uncertainty within the EU and more easing measures from the ECB. According to the bank, this may be followed by a surge to 1.10-1.15 in 1 year time.

GBP/USD extended the June 24th losses to over 11% on Monday, while plummeting to as low as 1.3152 in late European trade, which has been a level unseen since July 1985. At the start of the US session, the major pair returned above the 1.3200 mark. Near-term support sits at 1.2937 (the weekly R2 pivot). If broken, the next support should be 1.2786 (July 1985 low).

Goldman Sachs was reported to have trimmed its Sterling forecast, as it now projects that GBP/USD will probably trade at levels around 1.3400 by the end of 2016.

USD/CAD was off an intraday high of 1.3087, but remained supported within the 1.3010-1.3025 area. Near-term resistance sits at 1.3100 (the high from June 24th/the daily 200-period Exponential Moving Average) and then – at 1.3145 (the high from June 2nd/upper Bollinger line on daily time frame).

Gold futures for delivery in August preserved ground above the $1,320.00-per-troy-ounce mark, after reaching an intraday high of $1,339.30 in early Asian trade. Near-term resistance sits at $1,344.80 (the monthly R2 pivot) and then – at $1,362.45 (the high from June 24th).

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Oil drops with Iran talks in focus, Saudi Arabia outputOil drops with Iran talks in focus, Saudi Arabia output Both West Texas Intermediate and Brent benchmarks fell on Monday on speculations Iranian diplomats and their counterparts from six world powers may reach an agreement over the nations disputed nuclear program this week in Geneva. Data showing […]
  • Forex Market: USD/MXN daily forecastForex Market: USD/MXN daily forecast During yesterday’s trading session USD/MXN traded within the range of 13.0318-13.1052 and closed at 13.0645.At 8:51 GMT today USD/MXN was losing 0.03% for the day to trade at 13.0603. The pair touched a daily low at 13.0443 during the […]
  • EUR/USD with slight daily losses after Fitch Ratings decision about US ratingEUR/USD with slight daily losses after Fitch Ratings decision about US rating The euro traded slightly lower against the US dollar on Wednesday, after Fitch ratings agency said that it could reduce the AAA rating of the United States, with policymakers continuing debates on nations debt limit in order to avert a […]
  • USD/ZAR rebounds from 1-month low as focus sets on US NFPUSD/ZAR rebounds from 1-month low as focus sets on US NFP The USD/ZAR currency pair rebounded from a fresh 1-month low on Friday ahead of key US employment data later in the day, which will be closely watched for clues regarding the Fed's rate outlook.Still, the currency pair was on track to […]
  • Sinopec’s shares jump as it seeks business restructuringSinopec’s shares jump as it seeks business restructuring The shares of China Petroleum & Chemical Corp. climbed as the company is looking for private investors for as much as 30% of its oil retail unit. The eventual deal is estimated to more than 20 billion dollars.China Petroleum & […]
  • Societe Generale to axe 900 jobs in France this yearSociete Generale to axe 900 jobs in France this year According to a Reuters report, citing unnamed sources with knowledge of the matter, Societe Generale is about to slash some 900 jobs in France this year in a cost-cutting effort.The cuts will mostly affect IT and other support […]