Producer prices data from the US released on Friday saw a slower pace of growth in June. Official data showed that inflation at the factory gate grew just 0.1% on the month in June.
The slower pace came as energy prices fell 3.1% while trade services offset the declines with a 1.3% increase. Core PPI which excludes food, energy and trade services remained flat during the month. The USD closed bearish by Friday’s end.
Euro Gains as Industrial Production Rises
The euro got a boost from the latest industrial production figures. Data showed that the eurozone’s industrial production grew 0.9% on the month in May. This was better than the forecasts for a 0.2% increase. Despite the uptick in industrial production, the overall industrial activity still remains weak.
Will the EURUSD Push Higher?
The currency pair has been in a rebound after prices fell close to the support area of 1.1188 last week. Price action quickly recovered to reclaim the 1.1250 level which is currently working as support. A continuation to the upside will keep the common currency on track to test the 1.1400 level where resistance is likely to form.
Crude Oil Closes Higher on the Week
Price of WTI crude oil closed higher on the week, settling above the $60.00 handle. The gains in the commodity came as the Gulf of Mexico saw a 30% shutdown in production due to the tropical storm Barry. Prices were flat by Friday with both the EIA and OPEC expecting to see oil surplus in the year ahead.
Crude Oil Closes Flat Below Resistance
WTI Crude oil prices closed with a doji pattern on Friday. This marked a second consecutive doji formed below the resistance area of 61.00. A bearish follow-through from here could signal a short term correction. This will keep the commodity within the range of 61.00 and 57.50.
Gold Stays Flat as Markets Price in July Rate Cut
The precious metal was seen trading flat as investors are currently pricing in a rate cut from the Fed at the July meeting. The projected 25 basis point rate cut is expected at the Fed meeting due next week.
Will XAUUSD Break Out from the Range?
The gains in gold prices have been limited ever since prices rallied to post a six-year high. Since then, price has remained somewhat range-bound near the top end of the rally. The resistance is formed at 1423 and the support is seen at 1383. A breakout from this range is required in order for some trend to set in. The bias remains to the downside, for a correction toward 1341.