Talking Points:
– USDOLLAR Threatens Bearish Setup; Yellen Testimony in Focus
– GBP/USD Benefits From U.K. CPI; Higher-Low in Place?
– NZD/USD to Eye Fresh Record Highs on Strong 2Q CPI, China 2Q GDP

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10430.51

10432.41

10400.5

0.12

114.10%

USDOLLAR (Ticker: USDollar):
Dow Jones-FXCM U.S. Dollar Index struggling to hold gains as Fed Chair Janet Yellen retains a dovish tone for monetary policy at the Humphrey-Hawkins Testimony.
Seems Chair Yellen remains in no rush to normalize monetary policy as the central bank head continues to highlight slack in labor market, subdued wages and the weakness in housing.
Will retain the bearish outlook for the USDOLLAR as U.S. Retail Sales, Yellen Testimony fails to prop up interest rate expectations.

GBP/USD:
Bullish outlook remains favorable as price & the Relative Strength Index (RSI) retain the bullish trend from earlier this year.
Appears to have carved a higher-low around 1.7065 (23.6% Fibonacci retracement) as stronger inflation raises bets for Bank of England (BoE) rate hike.
With U.K. Jobless Claims expected to contract another 27.0K in June, a positive market reaction may trigger a more meaningful run at the 1.7200 pivot, followed by confluence of Fibonacci expansions around 1.7220-30.

NZD/USD:
New Zealand dollar may trade to fresh record-highs over the next 24-hours of trade as New Zealand inflation is expected to pick up, while China GDP figures are anticipated to show a faster rate of growth for the second-quarter.
The 2011 high (0.8841) remains the key topside level to watch followed by the 0.8850 region (61.8% Fib expansion) ahead of the Reserve Bank of New Zealand (RBNZ) policy meeting on July 23.
Credit Suisse Overnight Index Swaps (OIS) shows market participants are pricing a 91% chance for a 25bp rate hike next week.

For more updates, sign up for David’s e-mail distribution list.

Join DailyFX on Demandfor Real-Time SSI Updates Across the Majors!

Read More:
Price & Time: Focus Still on the Antipodeans
NZDUSD Opening Range Setup- Rally Vulnerable Sub 8850

USDOLLAR Daily

Chart – Created Using FXCM Marketscope 2.0
Interim Resistance: 10,508 (61.8% retracement) to 10,524 (38.2% retracement)
Interim Support: 10,354 (Oct. low) to 10,375 (50.0& retracement)

Release

GMT

Expected

Actual

Advance Retail Sales (JUN)