The US equities markets have opened up today putting pressure on the greenback but these stocks gains could not hold as the disappointing release of June US consumers confidence survey is still in the investors' minds and is not out of the current market sentiment affecting negatively on the risk appetite. Dow could just keep 57 points of gains at its closing.

US June ADP employment came worse than the market expectations of -411k at -473k which increased the market readiness of further lost jobs to be shown today with the release of June US non-farm payrolls which are expected to be -368k jobs with an increasing of the US unemployment to 9.6% but we have seen today too an improving of May US ISM manufacturing index to 44.8 from 42.8 and it was expected to be 44 and as we have mentioned in the recent analysis, the market has focused on the price paid index which came at 50 to push the gold up as the increased inflation pressure in the manufacturing sector in May as the market was waiting for just an increasing to 46.7.

Lot of “key days” yesterday or just more head fakes?

A key day reversal is defined by Stockcharts.com as “a one day chart pattern where prices sharply reverse during a trend. In an uptrend, prices open in new highs and then close below the previous day's closing price. In a downtrend, prices open lower and then close higher. The wider the price range on the key reversal day and the heavier the volume, the greater the odds that a reversal is taking place.”

The Greenback is still holding its gains across the broad after the disappointing release of June US consumers confidence survey could contain the market sentiment effecting negatively on the risk appetite. The figure came at just 49.3 and it was expected to get better to 57 after May jump to 54.9 from 44 in April which fueled the market optimism in the beginning of June but the collapse of June. Dow closed at 8447 losing 82 points after gaining in its first session this week by 1.08% after 2 consecutive weeks of losing after reaching this year high at 8875 on 11st of last month from the index low on 9th of last March when it reached 6469. By god's will, the market is expected to focus today on the release of US manufacturing index of June which is expected to be 44 from 42.8 in May.

AUD and GBP: The Pressure is Building

We’re still getting mixed signals as a consolidation moves continue. But it looks as though some of the currencies are building up steam; the likely resolution (on technical analysis alone) being a sharp breakout in accordance with the trend prior to consolidation. In other words, up versus the US dollar.

We’ll start with the British pound, which has made an almost unfathomable run in the previous four months.