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Manufacturing PMIs Put the EUR and USD in Focus as Demand for Riskier Assets Rises

The Day Ahead:

For the EUR

It’s a busy day ahead on the economic calendar. Key stats include May’s Manufacturing PMI numbers for Italy and Spain. Finalized PMIs are also due out for France, Germany, and Spain.

The markets will be looking for better a rise in Italy’s PMI and for Germany and the Eurozone PMIs to avoid a downward revision.

We expect that the focus will be in the details, with hiring and new orders key areas to consider.

Away from the economic calendar, risk appetite supported the EUR in the early part of the day.

At the time of writing, the EUR was up by 0.33% to $1.1138.

For the Pound

It’s a relatively quiet day ahead on the economic calendar. May’s finalized Manufacturing PMI is due out later today. Barring a material deviation from prelim, however, we would expect the Pound to brush aside the numbers.

Updates on Brexit and COVID-19 will likely be the key drivers on the day.

At the time of writing, the Pound was up by 0.47% to $1.2401, the upside coming off the back of Dollar weakness.

For the USD

It’s a busy day ahead on the U.S economic calendar. The market’s preferred ISM Manufacturing PMI for May is due out along with finalized Markit Manufacturing PMI numbers.

Expect the focus to be on the ISM number. Last week, we saw the Chicago PMI fall back. A similar trend in the ISM would raise doubts over a summer economic recovery in the sector.

Outside of the numbers, however, the markets brushed aside concerns over rioting and the rise in tensions between the U.S and China. Chatter from Beijing or Washington could shift the optimism, however.

The Dollar Spot Index was down by 0.38% to 97.97 at the time of writing.

https://www.fxempire.com/news/article/manufacturing-pmis-put-the-eur-and-usd-in-focus-as-demand-for-riskier-assets-rises-652482



EUR/USD: Bulls in control above 1.1100 starting out ECB week

EUR/USD technical levels to watch

The immediate resistance awaits at 1.1146/50 (2-month tops/ psychological level), above which 1.1200 is on sight. On the flip side, the pullbacks will meet demand at 1.1097 (daily low) and 1.1015/12 (10 and 200-DMA).

https://www.fxstreet.com/news/eur-usd-bulls-in-control-above-11100-starting-out-ecb-week-202006010407

According to Trading Central (3rd party RIA) the EURUSD is long positions above 1.0990 with targets at 1.1235 & 1.1345 in extension.

* Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10762728

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 1.1235
1€ 3,333.33€ 1,666.67€ 852.24
5€ 16,666.67€ 33,333.33€ 4,261.22
10€ 33,333.33€ 66,666.67€ 8,522.45
25€ 83,333.33€ 166,666.67€ 21,306.12
50€ 166,666.67€ 333,333.33€ 42,612.25

USD/JPY Price Analysis: Slips below 200-HMA amid broad US dollar weakness

USD/JPY drops to 107.61, down 0.18% on a day, during the pre-European session on Monday. The pair recently declines below 200-HMA as the US dollar index (DXY) stays pressured near 11-week low following President Trump’s no sanctions on China while also taking clues from riots in several states of the world’s latest economy.

Technically, the pair’s declines below the key HMA drag it further down toward 107.40 immediate support.

However, 61.8% Fibonacci retracement level of May 13-19 upside around 107.25 could challenge the bears then after, if not then the sub-107.00 area could return to the charts.

On the contrary, an upside clearance above the recent high around 107.90 isn’t a convincing sign for the pair’s run-up as multiple highs marked since April 16 around 108.10 act as the strong resistance.

https://www.fxstreet.com/news/usd-jpy-price-analysis-slips-below-200-hma-amid-broad-us-dollar-weakness-202006010440

According to Trading Central (3rd party RIA) the USDJPY is short positions below 109.35 with targets at 106.00 & 105.15 in extension.

* Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10762729

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 106.00
1€ 2,992.22€ 1,496.11€ 1,286.50
5€ 14,961.10€ 29,922.20€ 6,432.50
10€ 29,922.20€ 59,844.40€ 12,865.00
25€ 74,805.51€ 149,611.01€ 32,162.50
50€ 149,611.01€ 299,222.02€ 64,325.00

Gold rises as U.S. riots, Hong Kong tensions lift safe-haven appeal

Gold prices climbed on Monday as reports of riots in the United States rattled investors already reeling from the deepening China-U.S. rift, fanning concerns of a fresh economic setback and drove traders towards the safe-haven metal.

Spot gold was up 0.6% at $1,736.31 per ounce. U.S. gold futures were flat at $1,751.30.

https://www.cnbc.com/2020/06/01/gold-markets-us-unrest-hong-kong-tensions-in-focus.html

According to Trading Central (3rd party RIA) the GOLD is long positions above 1695.00 with targets at 1765.00 & 1805.00 in extension.

* Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10762723

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 1765
0.503,911.581,955.79987.43
1.007,823.163,911.581,974.87
5.0039,115.8019,557.909,874.33
10.0078,231.6039,115.8019,748.65
20.00156,463.2078,231.6039,497.31