New York Session Recap

Daily Forex Fundamentals | Written by Forex.com | Jul 23 08 21:51 GMT |

The US dollar caught a nice bid in the NY session, extending its gains against the majors. Commodity prices ran the show as oil and gold dropped in size and allowed the buck to enjoy a very bullish tone despite a very volatile stock market. Oil fell $2 in the session and closed near the lows around $124.38/bbl. The next level of support for the commodity looks to be $122 which is near the 100-day MA. Gold absolutely plunged today, slipping $26 to around $920/oz. The focus for the metal remains down while below $950/oz and a break below $917 should see a try for $900 initially. EUR/USD fell further to a close near 1.5700 after opening the session near 1.5740. We anticipate that weaker than expected Eurozone PMI reports due out later tonight will exacerbate declines for the pair and would not be surprised to see it trading below 1.5600 on very weak reports. USD/JPY traded sideways for the most part as US stocks saw a very volatile session. In the end stocks ended the day higher by about 0.4% and this helped the pair hold on to gains. USD/JPY opened near 107.80 and closed just a tad higher near the 107.90 mark. The story at the close of the NY session was the RBNZ's surprise decision to cut the policy rate to 8.00% from 8.25%. Bollard noted a weakening economy and an expectation that inflation will begin to decelerate as motives for the cut. He also hinted that further rate cuts may be in the offing if the economic picture deteriorates further. The initial reaction from Kiwi (NZD/USD) was to drop from 0.7500 right before the release to 0.7410 as the number hit the tapes. The pair eventually recovered and was slightly above 0.7440 at last check. Upcoming Economic Data Releases (Asia Session) Prior Estimate 7/23 23:50 GMT JN Merchnds Trade Balance Total JUN ¥365.6B ¥506.0B 7/23 23:50 GMT JN Adjusted Merchnds Trade Bal. JUN ¥642.3B ¥270.0B 7/24 1:00 GMT JN BOJ Board Member Atsushi Mizuno Speaks Forex.com http://www.forex.com DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.