Top 5 Things to Know Before You Start Trading
1. The US dollar (USD) rebounded against a basket of the other major currencies on Wednesday as fears over geopolitical tension eased and investors looked ahead to U.S. data on jobs and second quarter growth.
2. EUR/USD cleared the 1.20 mark. USD/JPY came within reach of the 1.0813 key support. However, equities and the USD rebounded in US trading. The comeback was supported by a good US consumer confidence. EUR/USD finished a volatile session at 1.1972 (from 1.1979). USD/JPY more than reversed the initial setback and closed at 109.71.
3. US equities ended with small gains yesterday, recovering from early weakness on the back of European risk aversion (North Korea-linked). Overnight, Asian stock markets paint a similar picture as Wall Street.
4. Today’s eco calendar is interesting. German inflation readings and the ADP employment report will get most attention from a market. The second reading of Q2 GDP will also get attention.
5. Gold prices are trading lower on Wednesday, as investors locked in profits fron the precious metal’s rally to a 10-month peak in the previous session and as geopolitical tensions between the U.S. and North Korea seemed to subside. Gold rose to $1326 before falling to $1305 overnight. It trades at $1310 at time of writing