Euro rises against German business climate decline

Alexander Kuptsikevich FxPro

The Ifo German Business Climate Index declined in June as expectations worsened, confirming a reversal of the downward trend.

The Ifo index fell from 89.3 to 88.6 instead of the expected increase to 89.4, making it the second month of contraction, albeit a very modest one. At this point, it is correct to speak of a halt in growth, but it is hardly justified to mark the beginning of a decline.

The fresh figures complemented last week's unexpected and sharp plunge in PMIs.

This potentially negative news did not prevent the single currency from recovering against its major peers on Monday, with EURUSD rising back above 1.0720. EURGBP has risen to 0.8470 and is actively closing the gap formed after the French election announcement. EURJPY surpassed 171, above which it traded for a few minutes on 29 April and before that in September 1992.

The euro's movement against the news on Monday looks like a pullback after the excessive negativity ahead of the French elections and more like a technical rebound, which worked out about half of its potential, forming resistance at 0.8500 in EURGBP and around 1.0770 in EURUSD.

Author

Alexander Kuptsikevich

FxPro

Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.

EUR/USD treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B

The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.