Mexico’s trade balance for June showed a surplus of $0.514 billion, down from $1.029 billion in the previous month. This change reflects a shift in trade patterns compared to earlier months. The AUD/USD fell, indicating a weaker Australian Dollar due to pressure from a stronger US Dollar. At the same time, the EUR/USD dropped below 1.1600, influenced by developments in the US-EU trade agreement and upcoming economic data releases.

Gold And Ethereum Outlook

Gold prices neared $3,300 per troy ounce as the US Dollar gained strength, lowering demand for the metal. Ethereum (ETH) traded at $3,803, down slightly after reaching a high of $3,941 during the same session. The US Federal Reserve faces criticism for not cutting rates despite strong economic performance and labor market concerns. Brokers are being evaluated for their features, such as low spreads and solid trading platforms. Currently, the Federal Reserve’s reluctance to cut rates seems to be driving the market. Recent US inflation data for May, which was slightly lower at 3.3%, hasn’t changed the Fed’s strict stance. This ongoing policy firmness supports a strong US Dollar in the coming weeks. We expect the EUR/USD pair to weaken further, especially after the European Central Bank cut its interest rates in early June. The different monetary policies in the US and Europe create a solid reason for the dollar to outperform the euro. We’re exploring derivative strategies that benefit from a decline towards the 1.1500 level or lower. Similarly, the Australian Dollar may struggle due to the strong greenback and mixed economic data from China, its largest trading partner. Historically, periods of aggressive US policy, like in 2022, have led to significant declines in the AUD/USD. Traders should consider this pressure when making decisions on the pair.

Commodities And Digital Assets

In commodities, a strong dollar is likely to limit gold’s potential for price increases from its current level of around $2,320 per ounce. High US Treasury yields raise the opportunity cost of holding non-yielding assets, making gold less appealing. We advise caution on new long positions until we see a clear dovish shift from Powell’s committee. The shrinking trade surplus in Mexico suggests a possible cooling in export strength, which might bring volatility for the peso. Although the USD/MXN has been a popular trade, this new data signals that regional dynamics may be changing. We will monitor upcoming trade balances for signs of a consistent trend. The small drop in Ethereum after its recent high indicates that risk appetite for speculative assets may be declining. This is a typical reaction when the dollar strengthens and market uncertainty increases. Traders should prepare for fluctuating price action in digital assets rather than a steady rise. Create your live VT Markets account and start trading now.

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