By: IntegrityFX
The poor economic news out of the UK will likely continue on into tomorrow with the release of housing and manufacturing data. We also get the same manufacturing data from the US as well as employment data from ADP. Despite the risk aversion seen today there is still more room for weakness in the markets. The S&P will likely make a move toward 905 bringing US dollar strength during the US session tomorrow.
Oil looks as though it is ready to make a more upward tomorrow, bringing USDCAD down along with it. However, this contradicts the outlook for equities tomorrow, making tomorrow’s overall outlook neutral. So if the day shows continued risk aversion look to buy USD against the EUR or GBP, however if the day reverses today’s sentiment look to sell USDCAD. But tomorrow is more likely to see further risk aversion.
Daily Currency Pair Analysis EURUSD: Look to sell this pair in anticipation of a fall in US equities tomorrow and further poor news out of Europe.
IntegrityFX Daily Intermarket Outlook July 1
DailyForex.com