The past week remained slightly bullish for the euro, as the manufacturing and as well as the services sector of Germany and the overall Eurozone grew much better than expected in the past month. Despite decent outcomes of U.S. economic indicators including existing home sales and unemployment claims the Euro kept itself firm against the greenback. The pair gained nearly 125 points last week but managed to keep around 80 points move by Friday last week, where it closed near the 1.3380 area.
This week, investors are eyeing on the economic indicators of the Eurozone which include the German consumer climate, money supply data, German CPI, and the Italian, German, and Eurozone’s unemployment levels.
The British pound gained considerably against the U.S. dollar, but failed to sustain its move where it lost all its gains and instead closed well below the critical support level of 1.5620 on Friday that technically has taken it into the bearish zone.
The BBA Mortgage Approvals dropped down to 37.2K in the month of July against the expected figure of 38.8K, which shows a decline in the number of mortgages approved for home purchases within the U.K. As for this week, no such critical economic indicator is due however the BoE Governor Mr. Carney is set to speak on Wednesday which could cause good volatility in the market depending on what statements come from his side.
After giving a bullish correction in the first and second weeks of August, the pair lost massively in the third week where it slipped more than 280 points and closed near the level of 0.9035 on Friday.
The Australian dollar is back in the bearish channel as it closed well below the critical support level of 0.9080 on Friday, and analysts are expecting the bears to take the pair further down to the 0.88xx area very soon.
The economic indicators to look forward to this week for the Aussie are the construction work done, new home sales, and the private capital expenditure data.
Gold has already tested its resistance level targets last week and may look forward to the important drivers of gold market this week. The key economic indicators for the U.S. dollar that are to be released this week include the consumer confidence data, pending home sales, prelim GDP, and unemployment claims that could shape the movement of the U.S. dollar against the major currencies and as well as gold. Closing above 1420 level would be considered as a good-bye for bears from the gold market.
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