FOREX Market Insight ll

The revised GDP figures of 1.8% have placed an initial cap for the USD rally at current market conditions. Although, mixed reports on the state of the slower than expected economic recovery have also created a gray cloud over the Fed's tapering schedule.

With jobless claim falling and a slight improvement on consumer spending have signaled waivering sentiments as to where the next direction for the USD would take place. But the commodity prices on the yellow metal continues to decline have so far been supportive of the USD in these current levels. These conditons may weary its strength in case fresh demand would perk-up Gold prices on its way up for a corrective recovery in the 1250.00 /oz level from a low @1180.00 Likewise, As a matter of due diligence, please refer to where the corresponding price level of the USD Index when Gold prices were at the same pivotal price @1200.00 to have a better understanding of the point spread between gold and USD prices.

With the end of the month and 2nd quarter trading position / price adjustments by major institutions; this would add to increase price volatility by the opening of the new month in July. Market behavior focuses on any possible change on the Fed monitoring slower growth as the revised decline on GDP had little impact on the current USD levels.
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