Daily Forex Analysis - 24th June 2021

USD Overview (24 June 2021)

Yesterday, USD strengthened against most major currencies except GBP, AUD and NZD.

The flash PMI data released yesterday indicated continued expansion in the manufacturing sector despite the existing supplier delays and difficulties in finding suitable workers. The services sector continues to expand albeit at a slower pace.

- Flash Manufacturing PMI (Actual: 62.5, Forecast: 61.5, Previous: 62.1 revised from 61.5)

- Flash Services PMI (Actual: 64.8, Forecast: 70.0, Previous: 70.4 revised from 70.1)

The New Home Sales data (Actual: 769K, Forecast: 864K, Previous: 817K revised from 863K) released yesterday indicated a decline in the number of new single-family homes being sold in May.

The Final GDP q/q data (Forecast: 6.4%, Previous: 6.4%) will be released later at 2030 (GMT+8).

Also at the same time, the Unemployment Claims data (Forecast: 382K, Previous: 412K) will be released.

FOMC member Bostic will be speaking later at 2130 (GMT+8).

Also, FOMC member Williams will be speaking at 2300 (GMT+8).

During these times, there may be volatility in USD.

NZD/USD Outlook (24 June 2021)

Overall, NZD/USD is trending downwards.

NZD/USDs next support zone is at 0.69500 and the next resistance zone is at 0.71000.

Look for short-term buying opportunities of NZD/USD.

AUD/USD Outlook (24 June 2021)

Overall, AUD/USD is trending downwards.

Currently, AUD/USD is testing the resistance zone of 0.75500 and the next support zone is at 0.73900.

Look for short-term buying opportunities of AUD/USD if it breaks the resistance zone of 0.75500.

USD/JPY Outlook (24 June 2021)

Overall, USD/JPY is trending upwards.

Currently, USD/JPY is testing the resistance zone of 110.800 and the next support zone is at 108.500.

Look for buying opportunities of USD/JPY if it breaks the resistance zone of 110.800.

EUR/USD Outlook (24 June 2021)

Overall, EUR/USD is trending downwards. Recently, EUR/USD bounced off the resistance zone of 1.19700.

The French flash PMI data released yesterday indicated continued expansion of business activities amid the lifting of lockdown restrictions, allowing economic recovery to be more sustainable.

- French Flash Manufacturing PMI (Actual: 58.6, Forecast: 59.0, Previous: 59.4 revised from 59.2)

- French Flash Service PMI (Actual: 57.4, Forecast: 59.6, Previous: 56.6 revised from 50.4)

The German Flash PMI data released yesterday indicated business activities continue to expanded at a faster pace in June.

- German Flash Manufacturing PMI (Actual: 64.9, Forecast: 63.0, Previous: 64.2 revised from 64.0)

- German Flash Services PMI (Actual: 58.1, Forecast: 55.8, Previous: 52.8)

The eurozone flash PMI data released yesterday indicated business activities in June expanded at the fastest pace for 15 years.

- Flash Manufacturing PMI (Actual: 63.1, Forecast: 62.4, Previous: 63.1 revised from 62.8)

- Flash Services PMI (Actual: 58.0, Forecast: 58.1, Previous: 55.2 revised from 55.1)

The German ifo Business Climate data (Forecast: 100.8, Previous: 99.2) will be released later at 1600 (GMT+8).

Currently, EUR/USD is moving towards the resistance zone of 1.19700 and the next support zone is at 1.17900.

Look for selling opportunities of EUR/USD if it rejects the resistance zone of 1.19700.

GBP/USD Outlook (24 June 2021)

Overall, GBP/USD is trending downwards. Recently, GBP/USD bounced off the resistance zone of 1.40000.

The UK flash PMI data released yesterday indicated continued expansion in the manufacturing sector while a slight slowdown in the services sector was likely due to the extension of COVID restrictions into July.

- Flash Manufacturing PMI (Actual: 64.2, Forecast: 64.1, Previous: 65.6 revised from 66.1)

- Flash Services PMI (Actual: 61.7, Forecast: 62.9, Previous: 62.9 revised from 61.8)

The Bank of England (BoE) will be announcing their monetary policy decision later at 1900 (GMT+8). The central bank is expected to keep monetary policy unchanged. Pay attention to whether the BoE is looking into quantitative easing (QE) tapering. The forecast for the asset purchase facility votes indicates that one committee member continues to vote for a cut in QE. With the recent rise in UK inflation and the strong economic recovery, more committee members may be voting for a tapering.

Currently, GBP/USD is moving towards the resistance zone of 1.40000 and the next support zone is at 1.38000.

If the BoE sends out any hawkish tone such as saying that it is looking to taper QE, look for short-term buying opportunities of GBP/USD after it breaks the resistance zone of 1.40000.

USD/CAD Outlook (24 June 2021)

Overall, USD/CAD is trending upwards. Recently, USD/CAD bounced off the support zone of 1.22400.

The Canadian retail sales data released yesterday indicated a decline in consumer spending in April due to the third wave of the pandemic.

- Core Retail Sales m/m (Actual: -7.2%, Forecast: -4.4%, Previous: 5.4% revised from 4.3%)

- Retail Sales m/m (Actual: -5.7%, Forecast: -5.1%, Previous: 4.5% revised from 3.6%)

Currently, USD/CAD is testing to break above the key level of 1.23. Its next support zone is at 1.22400 and the next resistance zone is at 1.23800.

Look for short-term selling opportunities of USD/CAD if it bounces down from the key level of 1.23.

GBP/JPY Outlook (24 June 2021)

Overall, GBP/JPY is ranging across.

The UK flash PMI data released yesterday indicated continued expansion in the manufacturing sector while a slight slowdown in the services sector was likely due to the extension of COVID restrictions into July.

- Flash Manufacturing PMI (Actual: 64.2, Forecast: 64.1, Previous: 65.6 revised from 66.1)

- Flash Services PMI (Actual: 61.7, Forecast: 62.9, Previous: 62.9 revised from 61.8)

The Bank of England (BoE) will be announcing their monetary policy decision later at 1900 (GMT+8). The central bank is expected to keep monetary policy unchanged. Pay attention to whether the BoE is looking into quantitative easing (QE) tapering. The forecast for the asset purchase facility votes indicates that one committee member continues to vote for a cut in QE. With the recent rise in UK inflation and the strong economic recovery, more committee members may be voting for a tapering.

Currently, GBP/JPY is testing to break above the key level of 155. Its next support zone is at 153.800 and the next resistance zone is at 156.000.

Look for buying opportunities of GBP/JPY if it breaks above the key level of 155.

EUR/JPY Outlook (24 June 2021)

Overall, EUR/JPY is trending downwards.

The French flash PMI data released yesterday indicated continued expansion of business activities amid the lifting of lockdown restrictions, allowing economic recovery to be more sustainable.

- French Flash Manufacturing PMI (Actual: 58.6, Forecast: 59.0, Previous: 59.4 revised from 59.2)

- French Flash Service PMI (Actual: 57.4, Forecast: 59.6, Previous: 56.6 revised from 50.4)

The German Flash PMI data released yesterday indicated business activities continue to expanded at a faster pace in June.

- German Flash Manufacturing PMI (Actual: 64.9, Forecast: 63.0, Previous: 64.2 revised from 64.0)

- German Flash Services PMI (Actual: 58.1, Forecast: 55.8, Previous: 52.8)

The eurozone flash PMI data released yesterday indicated business activities in June expanded at the fastest pace for 15 years.

- Flash Manufacturing PMI (Actual: 63.1, Forecast: 62.4, Previous: 63.1 revised from 62.8)

- Flash Services PMI (Actual: 58.0, Forecast: 58.1, Previous: 55.2 revised from 55.1)

The German ifo Business Climate data (Forecast: 100.8, Previous: 99.2) will be released later at 1600 (GMT+8).

Currently, EUR/JPY is moving towards the resistance zone of 132.800 and the next support zone is at 130.800.

Look for short-term selling opportunities of EUR/JPY if it bounces off the resistance zone of 132.800.