Market Briefing on Thursday June 30th

During its third day of recovery, after having encountered resistance in the area close to the hourly 200-period Exponential Moving Average (1.1150), EUR/USD slipped back below the 1.11 handle to trade at 1.1092 at the start of the US session on Thursday. Fundamentally, the common currency was supported by upbeat consumer price performance in the Euro area. The annualized Harmonized Index of Consumer Prices was reported to have risen 0.1% in June, according to the preliminary report by Eurostat, outstripping market consensus pointing to a flat performance, and following a 0.1% drop in May. The Core HICP was reported to have advanced 0.9% year-on-year in June, following a 0.8% increase in the prior month.

In the United States, the number of people, who filed for unemployment assistance for the first time during the business week ended on June 24th, rose to 268 000, or slightly more than anticipated, from 259 000 in the preceding week.

GBP/USD met resistance in the 1.3485-1.3500 area during the course of the European trading session on Thursday, sliding to 1.3412, while at the start of the US trade the major pair regained certain ground to inhabit the 1.3438-1.3475 zone. In fundamental terms, the ONS said the final estimate of United Kingdom’s GDP confirmed the 2nd estimate, released on May 26th, that economy expanded at a rate of 2.0% year-on-year during the first quarter of 2016. In addition, the nations current account deficit shrank to GBP 32.6 billion in Q1 from a revised up gap of GBP 34.0 billion in the previous quarter. The median forecast by experts pointed to a smaller deficit figure, GBP 27.1 billion.

Having fallen to an intraday low of 1.2915, or the lowest level since June 24th, USD/CAD recovered some ground, moving back above its hourly 200-period EMA. At the start of the US trade, the pair inhabited the 1.2940-1.2960 area, or where the daily R1, R2 and R3 Camarilla pivots are located.

Statistics Canada reported earlier that prices of industrial products in the country increased at a monthly rate of 1.1% in May, surpassing market expectations. In April prices were down 0.5%, which has marked the third consecutive period of decline.

Additionally, Canadian economy was reported to have expanded at a faster-than-projected annual rate in April, 1.5% instead of 1.4%, following a revised up annual growth of 1.2% in March. In monthly terms, Canadian GDP grew 0.1% in April, in unison with market consensus, after shrinking 0.2% in March.

Gold futures for delivery in August remained supported in the area above their hourly 100-period EMA, as they recorded an intraday low of $1,315.50 per troy ounce during the early phase of the European trading session. The current intraday high stood slightly above the daily Pivot Point, at $1,323.75.