The U.S dollar is rising vs all the majors and this trend can continue this week as markets price in a possible rate rise on June 15th.
The EUR/USD pair didn’t succeed in staying below 1.12 for a significant time period but another attempt this week could escalate downside momentum.
Next downside target is 1.18 and then the march low of 1.14.
Gold is trading around $1250 an ounce and could target its support level of $1228 an ounce, this week, if the dollar continues its upward move.
The biggest event of the week will be published on Friday at 12:30 gmt – U.S GDP.
Federal Reserve members stated that, good numbers from the U.S economy, in the short term, will confirm a June 15th rate hike.
Two main obstacles remain until the decision therefore the market reaction could be huge.
The first is the Gross Domestic Product number that will be published on Friday.
Assets to trade will be the U.S dollar and gold.