Market Snapshot – Dollar Holds on to Gains

Dollar Continues Recovery

The dollar continued to hold steady during the course of the day today as there is a holiday in the US for Independence Day and the volatility and the liquidity has been low so far. It was felt that the dollar bears could make use of that opportunity to push the dollar lower against the other currencies but that has not happened so far and the dollar has been able to hold on to its gains from yesterday. The markets wait in anticipation of a spate of news and data i the second half of the week that includes the FOMC and the NFP as well and these 2 events should determine the short term direction for the dollar.

Markets Expected to be Slow

It is a holiday in the US for today on account of their Independence day and it is expected that the liquidity and the volatility will be low in the markets for today. This should give some breathing space for the stock markets and for the currencies today and help them to recover a bit for the day as they await in anticipation of bigger data events later in the week. The dollar managed to stage a recovery yesterday and today as well and this has also helped the Asian and European markets to stage a minor comeback as of this writing. The second half of the day promises to be a dull day of trading with the US on holiday.

Gold Prices Consolidate at Lows

Gold prices continue to consolidate and range in the lows of the range and as we have mentioned several times earlier in our forecasts, the region around 1220 is expected to be strong support as the prices have bounced from this region many times in the past and the same is expected by the traders this time as well but those in the market for long would know that nothing is certain.