Multiple data bearish US dollar, gold prices fall below two-week high intraday trading, waiting for Fed officials to speak

Trading trends in financial markets remained sluggish on Wednesday as investors continued to look for the next catalyst. The European Statistics Office will release retail sales data for June during the European period. Later that day, the U.S. Treasury Department will hold a 10-year Treasury bond auction. More importantly, several Fed policymakers will make speeches.

The US dollar (USD) failed to achieve recovery momentum on Tuesday, and the US dollar index closed almost flat on the day. Data released by the Institute of Supply Management (ISM) shows that the Services Purchasing Managers Index (PMI) fell from 50.8 in June to 50.1 in July. The employment index surveyed by the PMI fell to 46.4 from 47.2 in the same period, while the inflation vifu.netponent paying price index rose to 69.9 from 67.5. Earlier on Wednesday, the U.S. dollar index continued to consolidate sideways below 99.00, with U.S. stock index futures rising 0.3% to 0.4%.

U.S. President Donald Trump said in an interview with CBNC on Tuesday that they are very close to reaching an agreement with China. Trump also noted that U.S. Treasury Secretary Scott Bescent would not be seen as the successor to Fed Chairman Jerome Powell because he hopes to continue in his current position.

Directors on Wednesday showed factory orders fell 1% month-on-month in June. The data was released after a 1.4% contraction in May, lower than market expectations of 1% growth. After the data was released, the EUR/USD continued to fluctuate up and down in a very narrow channel below 1.1600.

Basic foreign exchange market conditions:

New Zealand Statistics Bureau reported that New Zealand's unemployment rate rose slightly from 5.1% in the first quarter to the second quarter5.2% of the degree. The data was better than the market expectations of 5.3%. After a slight decline on Tuesday, the New Zealand dollar/USD held its position earlier on Wednesday and traded in the positive zone above 0.5900.

On Wednesday, the pound/dollar continued to hover slightly below 1.3300. The Bank of England (BoE) will announce a monetary policy decision on Thursday.

The USD/JPY remained relatively calm during the European session on Wednesday, fluctuating above 147.50 after a slight increase on Tuesday.

Bulle market fundamentals:

Gold prices maintained their quotation tone in early European session on Wednesday, and now it seems that they have ended their four-day rise, falling to the nearly two-week high that they hit the previous day. Currently below $3370

Analysis of major currency trends:

Euro: The intraday bias of the euro/dollar remains neutral, and the outlook remains unchanged. On the upside, a correction from 1.1829 above will be confirmed that the correction from 1.1829 has been vifu.netpleted, and three waves of corrections were made at 1.1390. Further rebound should be seen to retest the 1.1788/1820 resistance zone. On the downside, breaking through 1.1390 will resume correction to the 38.2% retracement level 1.0176 to 1.1829, that is, 1.1198.

GBP: GBP/USD continues to trade in range, and the intraday deviation remains neutral. On the positive side, continuing to break through the 1.3363 support level and turn to resistance level will indicate that the decline has been vifu.netpleted, forming a three-wave correction. Next, you should see a further rebound back to the 1.3587 resistance level. Nevertheless, if it continues to fall below the 38.2% retracement level 1.2099 to 1.3787 (1.3142), it will aim at the 61.8% retracement level 1.2744.

JPY: The intraday deviation of USD/JPY remains neutral for the time being. As long as the support level of 145.84 is held, a larger rebound of 139.87 is still conducive to continuing. On the upside, a small resistance above 148.07 will bring a stronger rebound, and retest 150.90. On the downside, however, is that a firm breakout of 145.84 support will indicate that the full rise from 139.87 may have been vifu.netpleted. It should then fall further to 142.66 support level to confirm.

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