NEW YORK ( TheLFB-Forex.com ) -- Currency pairs moved back to their opening prices after Asian session trade saw Usd selling. The moves were reversed as European futures markets sent S&P 500 equity prices lower off a test of 1292 resistance, to settle around 1285 ahead of the London price fixings on oil and gold. A bout of intra-day Usd buying coincided with weaker than expected U.K. GDP numbers, which sent Gbp lower against all major counterparts and created a Usd buying move that could not however transpose itself to other pairs.
Tight ranges on Aud and Cad do not reflect the fact that global commodity prices have dropped 3-5% over the last few sessions. Jpy and Chf trading in the same tight ranges do not reflect the volatility in global interest rate markets. Eur and Gbp had been levitated higher on the strength of Federal Reserve-backed equity buying that has floated stocks higher on incredibly light participation levels. That is something Gbp will now rely upon to retrieve the overnight pip loss in reaction to a preliminary GDP read that garnered far more algorithm attention than seemed logical. The dollar index remains anchored at 78.50 and seems to be having a hard time attracting buyers in the near term. The index is easily holding main 78.00 support and created a 4-hour chart triple bottom that does target 82.00 if equity trade drops S&P Futures down to test 1265 support. Global market trade has signaled a major swing point, with commodities trading out of sync with equity and dollar trade. Interest rate markets are absorbing a raft of regional Bund, Gilt, and Treasury noise that is coming from all quarters as governments step in to protect their own views on fair value. Gold does not generate a new long signal until 1350 is broken and held on a weekly chart basis, in-line with silver closing through 27.50. A new long-oil signal will not be seen until WTI closes a weekly chart above 89.00. None of the three price points look to be in any danger of getting hit in the near term. Short signals for the next leg lower are gold under 1320, silver under 25.50, and WTI oil trade under 86.00, all of which could pressure equity values and allow the dollar index the chance to play catch-up.