Summary:
- EURUSD drops to 1.21 in volatile trade after the ECB keep rates unchanged
- SEK extends losses as Riksbank delays tightening
- US durable goods figures beat forecasts but core reading disappoints
- Technical overview: Gold
- Crypto decline once more
The latest ECB event has come and gone without any major fireworks as the bank announced no changes to its policy and president Draghi refrained from a significant dovish tweak in his tone during the press conference despite recent soft data. The market reaction was understandably a little muddled after the release, but now the dust has settled it seem to be negative for the Euro, with EURUSD falling to its lowest level since January and threatening to break below 1.21.
Another central bank in the headlines today is the Riksbank with the Swedish central bank also leaving all interest rates unchanged, but it did push back time for the projected beginning of monetary tightening. The SEK currency barely changed immediately after the decision, but it slid after a while.
Data from the US has shown strong durable good orders and employment figures, but upon closer inspection the releases aren’t in fact that positive for the US dollar. Whilst the headline durable goods orders beat, the core reading missed and the longer term trend in the latter is becoming potentially worrying. The USD however, seems to have taken this setback in its stride and is making pretty good headway by the European close.
A market that has felt this USD gain in the last few hours is Gold with the precious metal making a break lower. A technical overview for Gold can be found here.
After yesterday’s large declines there has been further weakness in the crypto space today, albeit in a more orderly fashion. Russia is going to implement new cryptocurrency regulations beginning in July, and the latest news seem to offer a confirmation they’re undertaking appropriate steps and this could be one of the factors weighing on price.