Regional progress issues received merchants promoting the euro in the present day!

Can the widespread foreign money get well sufficient to regain its bullish momentum?

Earlier than shifting on, ICYMI, yesterday’s watchlist checked out GBP/CHF for a break-and-retest alternative forward of BOE’s coverage choice. Be sure you take a look at if it’s nonetheless a superb play!

And now for the headlines that rocked the markets within the final buying and selling periods:

Recent Market Headlines & Financial Information:

U.S. preliminary weekly jobless claims for the week ending June 17: 264K vs. 271K earlier week

U.S. Present House Gross sales for Might: +0.2% m/m to 4.3M unites(-0.5% m/m forecast; -3.2% m/m earlier)

Fed’s Powell: FOMC members “do suppose that there are extra price hikes coming however we wish to make them at a tempo that permits us to see incoming data.”

In her remarks at a neighborhood occasion, Fed Board of Governors member Michelle Bowman stated that “extra coverage price will increase might be essential to deliver inflation all the way down to our goal over time.”

EIA crude inventories surprisingly fell by 3.8 million barrels vs. a 300K improve anticipated within the week of June 16

Australia’s manufacturing PMI rose from 48.4 to a three-month excessive of 48.6 in June as manufacturing shrank at its slowest tempo since February

Australia’s companies PMI fell from 52.1 to 50.7 at the same time as companies continued to rent extra workers in June

U.Okay.’s GfK shopper confidence rose for a fifth month in a row, up from -27 to -24 in June regardless of stubbornly excessive inflation and rates of interest

Japan’s nationwide core CPI, which excludes risky recent meals costs, got here in at 3.2% y/y in Might, increased than the anticipated 3.1% y/y however slower than April’s 3.4% y/y studying

au Jibun Financial institution flash Japan manufacturing PMI dropped from 50.6 to a contractionary 49.8 in June as each output and new orders declined whereas new orders dropped at their steepest tempo since February

U.Okay. retail gross sales slowed down from 0.5% m/m to 0.3% m/m in Might (vs. -0.2% m/m anticipated) thanks partially to heat climate boosted non-store retail exercise

HCOB France Manufacturing PMI dipped from 45.7 to a 37-month low of 45.5 in June; Providers PMI additionally weakened from 52.5 in Might to a 28-month low of 48.0 in June

Deteriorating demand situations dragged HCOB Germany Manufacturing PMI from 43.2 to 41.0 (37-month low) in June whereas the Providers PMI dropped from 57.2 to a 3-month low of 54.1

HCOB Eurozone Manufacturing PMI slipped from 44.8 to a 37-month low of 43.6 in June, Providers PMI additionally hit a five-month low from 55.1 to 52.4.

S&P International U.Okay. Manufacturing PMI dropped from 47.1 to a six-month low of 46.2, whereas the Providers PMI additionally weakened from 52.8 to a three-month low of 52.8

Worth Motion Information

Overlay of AUD Pairs 15-min

Very similar to within the earlier Asian periods this week, merchants apprehensive about main central banks going again to aggressive rate of interest hikes that push bond yields increased and in addition raised the percentages of recessions.

The risk-on AUD (and its comdoll twin NZD) weakened throughout the board earlier in the present day. It didn’t assist that PMI experiences from each Australia and Japan fanned the buyers’ international progress issues.

The Aussie steadied alongside its intraday lows close to the beginning of European session buying and selling, which gave merchants time to cost in weaker Eurozone PMIs by promoting EUR.

U.S. manufacturing and companies PMIs at 1:45 pm GMT

Use our new Forex Warmth Map to shortly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️

EUR/JPY 15-minute Foreign exchange Chart by TV

Weaker-than-expected Eurozone PMIs received merchants promoting the euro in the present day!

EUR/JPY, which was buying and selling across the 156.60 minor psychological stage, dropped all the best way to the 155.25 space earlier than the sellers took a chill capsule.

What makes the drop extra attention-grabbing is that it stopped at an space of curiosity from earlier this week.

Not solely that, however EUR/JPY’s present ranges are additionally not too removed from a 61.8% Fib retracement, the S2 (155.11) of in the present day’s Pivot Factors, and a pattern line help that hasn’t been damaged in at the least every week.

Are we taking a look at a pattern continuation within the making?

It’d rely upon how EUR/JPY reacts to its pattern line retest.

If EUR bears determine that one huge 15-min bearish candlestick isn’t sufficient to cost in weaker PMI growths within the Eurozone, then EUR/JPY may drop additional, perhaps to the 154.50 space.

But when we see an end-of-week revenue taking, or if merchants shrug off weak Eurozone PMIs in favor of pricing within the ECB’s hawkishness, then EUR/JPY may bounce from its help zone and return above the pattern line.

What do you suppose?