Summary:
- Chicago Fed national activity index -0.01 vs +0.10 exp
- Economic indicator sits near recent average
- USD lower on the day
On a quiet day of economic releases the Chicago Fed is arguably the biggest from the US. The reading of -0.01 shows this indicator has fallen back to little changed and is currently around its longer term average. Whilst this latest data point could be seen as mildly disappointing it is fairly neutral overall and after some strong wild swings in Q2 the volatility seems to have dampened off.
The Chicago PMI was little changed on the prior reading and sits close to its longer term average. Source: Bloomberg
The US dollar remains in a precarious position and the recent attempts to bounce from key support have failed to gain traction. The last two weeks have seen notable wicks above the candle which shows how attempts to rally have been met with selling.
The USD index remains close to its lowest level in almost 3 years around the 92.00 handle. Source: xStation
The pressure on the US dollar has been supportive of Gold and the precious metal remains close to its year-to-date high. Unfortunately the price action has been quite choppy and Friday’s session saw a break higher that was met with some selling. 1295 could be a key level to watch on a closing basis whilst intraday 1300 will be on some traders’ radar.
Gold broke to its 2017 high on Friday but was met by a wave of selling. Will the triple top around 1295 hold or is a breakout on the cards? Source: xStation