Daily Market Forecast, July 5, 2017 – EUR/USD, Gold, Crude Oil, USD/JPY, GBP/USD

USD/JPY: Known Range as Political Tensions Rise

The Yen has gotten slightly stronger this morning against the U.S Dollar. And the Nikkei and Topix Indexes have both seen cautious selling. The 113.00 level between the Yen and U.S Dollar remains an important juncture. While political tensions between Japan and North Korea may be highlighted, traders appear to be testing a known range. The Yen could provide volatility in the days to come.

Gold: Speculative Clouds Persist

Gold has seen a bounce this morning upwards, but the precious metal remains near important support. The 1225.00 U.S Dollars an ounce ratio remains important. Traders tempted to buy Gold based on the potential of risk events escalating via North Korea may be heard, but the precious metal remains under a speculative cloud which has created a downward trend in recent trading that could persist.

EUR/USD: A Belief in Momentum

The Euro remained in a tight trading mode on Tuesday as the absence of American traders had an effect in forex. The Euro remains comfortably above the 1.13 level against the U.S Dollar. Traders may continue to look for upside momentum for the European currency with the belief it has the potential to extend its gains.

Crude Oil: Energy Sector Production Concerns

Crude Oil is likely to see volatility the remainder of the week. Yesterday’s holiday in the U.S created a consolidated range. However, tomorrow Crude Oil Inventories data will be released. Also political worries between Saudi Arabia and Qatar continue to be a talking point. Supply and production in the energy sector however remain a big impetus.

GBP/USD: A Resumption of Trend

The Pound traded in a rather tight range on Tuesday. Construction PMI nearly met its expectation. The 1.29 level remains support for the Pound against the U.S Dollar. Traders may be tempted to look for the Pound’s recent stronger trend to resume in the short term.

Yaron Mazor is a senior analyst at SuperTraderTV.

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