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Daily market review

Daily Market Review – 22/08/2017

Political chaos in Washington puts pressure on the world’s financial markets

 

Forex

ZEW’s data may support the euro

EUR/USD

EURUSD

Yesterday, the pair significantly increased, which resulted in general, from the fall of the US currency. The US dollar was under pressure after the dismissal of President Trump’s senior adviser. In any case, staff reshuffles are, to some extent, an uncertainty, which negatively affects investors’ confidence.

Also, the ongoing tension around North Korea is putting additional pressure on the US dollar. Meanwhile, yesterday’s release of the index of economic activity from the Federal Reserve Bank of Chicago also disappointed traders.

Today the trade’s dynamics may react on the data on the business environment sentiment from the German institute ZEW. The indicator will be presented at 09:00 (GMT). Nevertheless, the attention of market participants gradually switches to the annual economic symposium at Jackson Hole.

Resistance levels: 1,18273, 1,18571, 1,18934
Support levels: 1,17745, 1,17433, 1,17083

The Canadian retail sales’ data is in focus today

CAD/JPY

CADJPY

In light of recent developments in the global political arena, investors prefer protective assets, such as the Japanese yen and gold. Purchases of the former are observed in all pairs without exception.

Meanwhile, economic statistics provides temporary support to the Canadian dollar. For example, the data on inflation in Canada released on Friday, exceeded experts’ expectations. In the event of no escalation of political tension today, the couple may react to the data on retail sales in Canada for June, which will be released at 12:30 (GMT).

Resistance levels: 87,142, 87,377, 87,648
Support levels: 86,788, 86,553, 86,324

 

Stock market

The European stock market is under pressure

IBEX Futures

IBEX

The main European stock indexes finished yesterday’s trades in negative territory. This was facilitated by the investors trying to depart from risks connected with the political chaos in the White House. Some investors considered the resignation of Trump’s main adviser as a positive moment, but, nevertheless, the majority decided to withdraw funds from risky assets. Such assets, in particular, are securities.

Meanwhile, investors’ attention shifts from political issues to the highly anticipated speech of the ECB President Mario Draghi at Jackson Hole’s symposium. The investors will try to find hints on the further actions of the regulator.

Resistance levels: 10410,30, 10452,46, 10494,00
Support levels: 10325,98, 10283,20, 10245,38

 

Commodity markets

Gold is in high demand

GOLD

Gold

For most of the last week and yesterday, gold stayed in an upward trend. Such a dynamic was caused by the increased investors demand to protect their savings against the backdrop of the world’s political problems. For example, yesterday, South Korea and the United States launched joint exercises that could lead to an escalation of the conflict with North Korea.

Also, the political uncertainty surrounding the new appointments in the Trump administration is not supportive of investing in higher-yielding and risky assets. Meanwhile, trade’s dynamics may react to the publication of US economic statistics in the afternoon.

Resistance levels: 1289,54, 1293,89, 1298,00
Support levels: 1278,52, 1270,29, 1264,55

Daily Market Review – 21/08/2017

The easing of political tensions in the world limits the protective assets’ growth

 

Forex

The Japanese currency stepped down from weekly highs

USD/JPY

BrentOil

On Friday morning, the US dollar was trading downwards. Nevertheless, in the afternoon the pair was able to win back all losses incurred earlier. The reason for this dynamic was the decrease in demand for protective assets, which include, in particular, the Japanese yen. Political uncertainty eased following Trump’s decision to fire Stephen Bannon, who was the main strategist of the White House. It is him who is credited with helping the future US president Trump win elections.

Nevertheless, most traders saw such a step as a positive moment for the presidential administration. Also, the dollar was supported by positive data on the consumer sentiment index from Reuters / Michigan, which pointed to the growth of optimism among US consumers. The further dynamics maybe somewhat affected by the release of data on the index of economic activity from the Federal Reserve Bank of Chicago, which is scheduled for 12:30 (GMT).

Resistance levels: 109,439, 109,800, 109,999
Support levels: 108,912, 108,599, 108,330

Positive data on inflation in Canada supported the national currency

USD/CAD

USDCAD

At the end of the last week, the Canadian dollar strengthened significantly against its US counterpart. This dynamics was due to the publication of data on consumer price inflation in Canada. According to the data presented, the prices have grown just as experts predicted. This allows markets to expect another rates’ increase from the Bank of Canada before the end of this year. Also, additional support for the Canadian currency was provided by rising oil prices. It is worth reminding that the Canadian dollar’s rate directly depends on price of oil, which makes the country’s largest export share. Further dynamics of the pair may reflect on the publication of data on wholesale sales in Canada for June this year.

Resistance levels: 1,26122, 1,26522, 1,26858
Support levels: 1,25596, 1,25395, 1,25092

 

Stock market

White House staff reshuffle puts pressure on the US stock markets

S&P500 Futures

SP500

On Friday, the major US stock markets ended trades with a slight decrease, which continued merely due to inertia after the drop which occurred a day before. A certain influence on the trade’s dynamics was produced by personnel reshuffles in the presidential administration. On the one hand, investors regarded this step as positive. But on the other hand this extends the political uncertainty. Further dynamics of trades will be influenced by the general mood of investors and the rate of the US currency.

Resistance levels: 2430,25, 2433,75, 2439,30
Support levels: 2419,57, 2414,94, 2410,20

 

Commodity markets

“Black gold’s” quotes demonstrated significant increase

Brent Oil Futures

BrentOil

On Friday, oil’s quotes rose by $2, which was facilitated by a decrease in supply in the world market. Thus, according to some analysts, the oil market can reach a balance earlier than it was expected. Also, oil received support from data on reserves in the US, which declined, according to the released reports. Along with this, information about the fire at one of Texas processing plants also pushed the quotes up. According to the information received, one of the units at a major Shell Deer Park plant in Texas will be closed for at least a week as fire damages’ repair has to be carried out. In addition, according to sources from Baker Hughes, the number of operating drilling rigs in the US decreased by 5 units. Further trade’s dynamics will be influenced by fluctuations in the exchange rate of the US currency.

Resistance levels: 53,20, 53,50, 53,80
Support levels: 52,40, 52,00, 51,60

Daily Market Review – 16/08/2017

Today’s publication of the US Federal Reserve protocols is this week’s main event

 

Forex

The euro may respond to the data on the Eurozone’s GDP

EUR/USD

EURUSD

Yesterday, the US currency significantly strengthened against the euro. This was facilitated by positive data on retail sales in the US for July. The released values were higher than analysts’ expectations. In addition, the production index of New York’s Federal Reserve Bank for August was significantly higher than the forecast value. Nevertheless, by the end of the trading session, the US dollar lost almost half of the positions won, which was caused by a partial fixation of profits.

Meanwhile, it is expected that today’s publication of revised data on the Eurozone GDP for the second quarter of this year will influenced the dynamics of trading. The data will be presented at 09:00 (GMT).

In addition, the release the US residential real estate market data is scheduled for 12:30 (GMT). Nevertheless, today, the most anticipated event is the publication of the minutes from the Fed’s last meeting at 18:00 (GMT).

Resistance levels: 1,17700, 1,18141, 1,18462
Support levels: 1,17147, 1,16886, 1,16545

 

The British pound suffered from weak inflation data

GBP/JPY

GBPJPY

Yesterday, the British currency was under pressure. The reason for this dynamics was disappointing data on consumer inflation for July. Despite the fact that inflation is above the Bank of England’s benchmarks, most traders do not expect rates’ increase in the near future.

Meanwhile, the fall of the pair was limited by the low demand for the Japanese currency, which is typically desirable during political or economic crises. At the same time, today’s publication of data on the UK labor market may correct the negative situation. The report is scheduled for 08:30 (GMT).

Resistance levels: 142,530, 143,082, 143,573
Support levels: 141,958, 141,596, 141,240

 

Stock market

The largest online retailer publish its Earnings Report tomorrow

Alibaba Group Holdings Ltd (BABA)

Alibaba

Tomorrow, before the opening of the regular session, the world’s largest online retailer, the Chinese company Alibaba, will present its quarterly report. According to analysts’ expectations, earnings per share will be $0.93 compared to $0.63 for the previous period. As for the total revenue, this figure is expected to reach $30.10 billion compared to $38.58 billion for the previous period. If the forecasts are confirmed, the shares’ value may well rise to the level of 162.00-163.00 dollars per unit.

Resistance levels: 157,99, 159,52, 160,90
Support levels: 156,16, 154,40, 152,35

 

Commodity markets

Oil prices hit the bottom

Brent Oil Futures

BrentOil

Yesterday morning, oil lost in price. This was due to the updated forecasts from the International Energy Agency on the production’s volume in the United States. Presented forecasts indicated an increase in oil production in the US economy.

Meanwhile, the fall was limited by the report on reserves from the US Petroleum Institute, according to which they fell by 9.2 million barrels. This appeared to be higher than the experts’ forecasts. Also, today, the attention will be focused on the reserves’ report from the US Department of Energy. The latter is scheduled for release at 14:30 (GMT).

Resistance levels: 51,80, 52,70, 53,50
Support levels: 50,57, 50,04, 49,46

Daily Market Review – 10/08/2017

Traders switch attention to the US inflation data

 

Forex

The GBP may get a support from the industrial production data

GBP/USD

GBPUSD

After a week of losses, the British pound regained some of its lost grounds. Yesterday, the dynamics was influenced by political factors rather than by economics.

Meanwhile, traders are cautious while expecting the release of important inflation indicators for the US, which will be presented tomorrow. The Fed’s decision on the interest rates in the near future will directly depend on this data.

Nevertheless, today the main attention will be focused on the publication of data on the British industrial production, which will be presented at 08:30 (GMT). It is expected that the indicators will demonstrate some improvement, which will support the British currency.

Resistance levels: 1,30155, 1,30499, 1,30966
Support levels: 1,29525, 1,29271, 1,29072

Today, the US data will be the main driver for the pair

EUR/USD

EURUSD

It looks, like the growth of the euro paired with the US dollar came to an end. This is indicated by a number of technical indicators, and the pair being in overbought region. In addition, yesterday, the pressure on the pair came from the positive data on labor productivity in the US economy. Together with this, today’s data on the US labor market can help to develop yesterday’s dynamics. Also, data on producer prices will be presented at 12:30 (GMT). The latter is an important indicator of future inflation.

Resistance levels: 1,17700, 1,18141, 1,18540
Support levels: 1,17147, 1,16886, 1,16545

 

Stock market

The US stock markets is under pressure

Dow Futures

Dow

The rally of the US stock markets was stopped by the escalation of the confrontation with North Korea. It is worth noting, that on Tuesday and Wednesday the leaders of both countries exchanged threats of missile strikes and retaliatory actions on them. Against this background, investors switched their attention to safe assets, such as gold and the Japanese currency. However, the US economic data also stays in the focus of traders’ attention.

Today, close attention will be paid to statistics on producer prices.

Resistance levels: 22028,75, 22086,60, 22124,10
Support levels: 21959,00, 21916,90, 21883,20

 

Commodity markets

“Black gold” slightly increased in price

Brent Oil Futures

BrentOil

Yesterday, oil price showed growth. Such dynamics was due to the report on the reserves from the US Department of Energy, according to which they fell by 6.45 million barrels against expectations for their reduction of only 2.8 million. Meanwhile, the oversupply in the world market continues to affect prices. Today, the trade’s dynamics will directly depend on the value of the US currency, in which the value of oil is expressed.

Resistance levels: 53,30, 53,60, 53,95
Support levels: 52,30, 51,90, 51,40

Daily Market Review – 09/08/2017

The conflict between America and North Korea is on today’s agenda

 

Forex

Investors choose protective assets

USD/CHF

USDCHF

During yesterday’s morning session, the pair showed positive dynamics, reflecting on the impressive data on the US labor market. According to the data presented, the number of vacancies has risen to record values.

Meanwhile, the atmosphere on the market has changed dramatically after reports of an escalation of the conflict between the US and North Korea. Thus, the North Korean leadership stated that they were seriously considering a long-range missile strike on US air bases in Guam. In response, the US president said that they would respond with “fire and fury”.

Investors have traditionally preferred protective assets such as the Japanese yen and the Swiss franc. At the same time, data on labor costs in the US may influence the trade’s dynamics today. These are scheduled for release at 12:30 (GMT),

Resistance levels: 0,97086, 0,97300, 0,97530
Support levels: 0,96600, 0,96455, 0,96298

The Reserve Bank of New Zealand’s decision can put pressure on the national currency

NZD/USD

NZDUSD

Yesterday, the pair showed mainly a downward trend against the background of positive statistics on the US economy. In addition, the pressure on the New Zealand’s currency resulted from the commodity markets’ negative dynamics.

Meanwhile, market participants are getting ready for today’s announcement of the results of the central bank’s meeting. Most traders rely on a softer tone of the regulator’s management’s statement at constant rates.

According to analysts, the regulator will focus on the latest negative developments in the economy, which will lead to a certain drop in the rate of the New Zealand dollar. It is for this reason that the sell-off of New Zealand’s currency has been observed for the last two weeks.

Resistance levels: 0,73480, 0,73702, 0,73888
Support levels: 0,72988, 0,72838, 0,72694

 

Stock market

Gazprom will present its quarterly report today

Газпром ПАО (GAZP)

Газпром

Today, during the regular session, the Russian company Gazprom is expected to release its quarterly report. It is worth noting, that in the last quarter the company showed positive results.

Meanwhile, the anti-Russian sanctions imposed by the United States may play a negative role in future. First, this may affect the cost of both, the North Stream-2 and the thread of the Turkish flow. In any case, ambitious plans for the construction of these gas pipelines should be completed by the end of 2019. At the same time, right now investors are not eager to acquire the company’s shares in view of possible problems.

Resistance levels: 121,49, 123,87, 126,17
Support levels: 117,23, 116,08, 114,34

 

Commodity markets

Political uncertainty provides support for gold

GOLD

Gold

Since the beginning of this week, gold is in high demand due to its status of protective asset. This is facilitated by problems around the US presidential administration. In addition, the escalation of the North Korean conflict reached its apogee yesterday amid threats from the isolated state to launch a missile strike at the island of Guam. In addition, the leadership of North Korea said that in future it will never take part in negotiations on its nuclear program. This forces investors to resort to traditional protective assets, such as gold.

Meanwhile, the publication of US economic statistics may have some influence on today’s dynamics.

Resistance levels: 1267,33, 1270,84, 1274,12
Support levels: 1262,95, 1259,86, 1256,85

Daily Market Review – 07/08/2017

The US dollar is gaining momentum from the labor market’s data

                            

Forex

Fed’s officials speeches may affect the pair’s dynamics

USD/JPY

USDJPY

Last Friday, the pair demonstrated significant growth and returned to the level above 110.00. Such dynamics was caused by a positive report on the US labor market. According to the data presented, the number of jobs in July has increased by 209 thousand against the average forecast at around 183 thousand.

Along with this, the unemployment rate fell to 4.3%, which corresponds to the minimums for the last sixteen years. Meanwhile, the growth rate of average wages was 0.3%, which fully coincided with the analysts’ expectations. Such positive statistics may cause the US Federal Reserve to reconsider its expectations regarding the timing of the next rate increase.

Nevertheless, trade’s dynamics may receive some impact from the speeches of the US Federal Reserve’s officials, which will take place in the afternoon.

Resistance levels: 111,058, 111,284, 111,633
Support levels: 110,586, 110,292, 109,994

The euro lost some ground

EUR/USD

EURUSD

On Friday, the pair’s upward trend did not receive an extension. This was due to technical signals, as well as positive statistics for the United States. The NFP report pleased the supporters of the US dollar, exceeding all the forecast values.

Meanwhile, the main attention was focused on the average hourly wage. This figure reflects the future costs of Americans, which account for about two-thirds of  the US GDP. In addition, this indicator directly affects consumer inflation, which is observed by the US Federal Reserve.

Nevertheless, today the indicator of investor confidence in the Eurozone from Sentix, which will be presented at 08:30 (GMT), may have a certain impact on the dynamics of the euro.

Resistance levels: 1,1830, 1,18686, 1,19094
Support levels: 1,17275, 1,16955, 1,16545

 

Stock market

The US securities market is at its maximum

S&P500 Futures

SP500

Last Friday, American stock indexes rose against the background of positive data on the US labor market. Once again this instilled confidence in the strength of the US economy, capable of withstanding another rate increase. In addition, the quarterly reporting season provides significant support to the US securities market. More than 80% of companies, which reported on the results of the previous quarter, recorded growth in profits for shares and total revenue.

Meanwhile, investors closely monitor the mood of officials of the US Federal Reserve, in order to determine possible terms for the next rates’ increase. It is worth nothing, that during periods of the growing  rates, the assets of the stock market are coming under pressure due to the growing cost of lending.

Resistance levels: 2481,80, 2483,50, 2485,20
Support levels: 2478,20, 2475,70, 2473,70

 

Commodity markets

“Black Gold” claimed back some of positions lost earlier

Brent Oil Futures

BrentOil

Oil quotes rose on the basis of Friday’s trading, restoring some of the lost positions. This was facilitated by positive data on the US labor market, which pointed to the strength of the US economy. This can ultimately lead to increased demand for oil. In addition, according to the information of the service company Baker Hughes, the number of operating drilling rigs in the US decreased by one unit.

Meanwhile, in the near future, the focus of attention will be on the meeting of OPEC + in Abu Dhabi, which will consider the issue of fulfilling the terms of the production cut deal.

Resistance levels: 52,55, 52,91, 53,30
Support levels: 51,90, 51,44, 51,00

Daily Market Review – 03/08/2017

The market participants are getting ready for tomorrow’s NFP release

 

Forex

The Australian currency is sliding down as a result of negative statistics

AUD/USD

AUDUSD

Yesterday, the pair grew slightly against the background of negative statistics on the US labour market. According to the data presented yesterday, the change in number of employed citizens, released by ADP, reached 178 thousand and came short of forecast of 185 thousand. This produced moderate pressure on the US dollar. Meanwhile, the negative statistics on the trade balance of Australia, published today, changed the direction of the pair.

At the same time, pressure on the pair was provided by data on business activity in the services sector of China, which turned out to be below the expectations of experts. It is worth reminding, that China and Australia are the largest strategic partners.

Nevertheless, today’s dynamics of the pair will depend entirely on data on the US labor market. In addition, the long-anticipated NFP report will be presented tomorrow at 12:30 (GMT).

Resistance levels: 0,79434, 0,79704, 0,80071
Support levels: 0,79019, 0,78774, 0,78378

Today, the Bank of England’s decision on interest rates is in the focus of attention

GBP/USD

GBPUSD

Yesterday, some pressure on the British currency came from the data on activity in the construction sector in the UK. Meanwhile, the general sell-off of the US dollar limited the decline of the pair.

Nevertheless, traders are cautious before today’s announcement of the Bank of England’s decision on interest rates at 11:00 (GMT). According to the expectations of most analysts, the British regulator will not change the parameters of the current monetary policy at today’s meeting.

Along with this, the accompanying statement of the regulator on the current economic conditions will be published today. Also, it is expected that today after the announcement of the meeting’s results, the Bank of England’s head Mark Carney will hold a press-conference.

Resistance levels: 1,32500, 1,32835, 1,33152
Support levels: 1,31903, 1,31514, 1,31022

 

Stock market

The American stock market reached historic highs

Dow Futures

Dow

Yesterday, the main US stock index finished trading at a historic high. This was due to a strong quarterly report of Apple for the second quarter of this year. In addition, the support for the stock markets was provided by the economic statistics for the US, which turned out to be better than analysts’ expectations. Also, rising oil prices had a positive impact on investor mood.

Meanwhile, today most of them will be cautious because of approaching tomorrow’s NFP report.

Resistance levels: 22050,00, 22091,00, 22135,00
Support levels: 21983,00, 21935,00, 21890,00

 

Commodity markets

Gold lost its position

GOLD

Gold

During yesterday’s morning trading session, precious metal prices rose slightly, reaching  recent months’ maximum. Nevertheless, by the close of the trading day, the price of gold fell against the background of profit taking. Also, positive reports on business activity in the US manufacturing sector supported the dollar, which put pressure on the value of gold. Today, the focus will be on data on applications for unemployment benefits in the US. Meanwhile, investors will be waiting for the NFP’s report which will be released tomorrow.

Resistance levels: 1266,60, 1272,00, 1277,50
Support levels: 1261,00, 1254,60, 1247,40

Daily Market Review – 02/08/2017

The start of the holiday season was marked by a change in markets’ priorities

 

Forex

The US dollar may get some support from the labour market data

USD/CHF

USDCHF

Yesterday’s trading saw the pair remaining in the same side range. Meanwhile, the Swiss franc declined against its rivals after the head of the central bank commented on its high cost. Nevertheless, traders do not rush to buy the US dollar, which is reflecting on general disappointment with Trump’s politics.

In addition, in the light of the latest negative statistics, the probability of tightening monetary policy on the part of the US Federal Reserve has decreased. Along with this, traders are eagerly awaiting the Friday NFP report, which can clarify the situation with the US economy.

Today, trade’s dynamics may be somewhat affected by the data on the change in the employees’ numbers from ADP, which will be presented at 12:15 (GMT).

Resistance levels: 0,96832, 0,97206, 0,97530
Support levels: 0,96297, 0,95952, 0,95532

Positive statistics supports the British currency

GBP/JPY

GBPJPY

The British currency began this week on a positive note, which, to some extent, was facilitated by economic statistics. So, yesterday the data on business activity in the manufacturing sector of Great Britain were presented. The published data turned out to be higher than the forecast values, which supported the pound. In addition, the support for the pair was provided by the soft position of the Bank of Japan, which continues to buy out securities, increasing the amount of money in the economy of the country. This makes the Japanese yen cheaper. However, today the pair’s dynamics may be affected by the publication of data on business activity in the construction sector of the UK, scheduled for 08:30 (GMT).

Meanwhile, the market reaction may be limited in the light of upcoming announcement of the Bank of England’s decision on interest rates, scheduled for tomorrow.

Resistance levels: 146,581, 147,110, 147,453
Support levels: 146,064, 145,496, 145,022

 

Stock market

Today the manufacturer of electric cars will present their quarterly results

Tesla Inc (TSLA)

Tesla

Today, after the closure of the regular session, Tesla will present its quarterly results. According to the experts’ expectations, the loss per share will be 1.83 dollars, and the total revenue will be 2.51 billion dollars. It is worth noting, that the shareholders of the company were making loss for the last two quarters. This was due to the launch of new projects, whose payback is designed for several years.

Meanwhile, the company’s shares are in high demand, especially after launching the series of the new Model 3 car, the first copies of which have already been received by customers.

Resistance levels: 326,23, 337,08, 347,37
Support levels: 313,40, 303,25, 295,58

 

Commodity markets

Oil’s prices fell on the background of profit taking

Brent Oil Futures

BrentOil

“Black gold’s” quotes fell by 3% yesterday, which was caused by an increase in supply in the world market. According to the latest data, OPEC production in July increased by 90,000 barrels per day. This is the maximum value of the current year. In addition, the Institute of Oil of the USA yesterday presented a report according to which the reserves increased by 1.7 million barrels against expectations for their reduction by 2.3 million barrels.

A gradual growth of reserves in the medium term will put pressure on oil price. Meanwhile, today’s dynamics will be affected by the report on reserves from the US Department of Energy, which will be presented at 14:30 (GMT).

Resistance levels: 51,80, 52,30, 52,70
Support levels: 51,00, 50,50, 50,00

Daily Market Review – 01/08/2017

The USD may lose any chances of recovery

 

Forex

The euro is supported by positive statistics

EUR/JPY

EURJPY

During yesterday’s trading, the euro, paired with the Japanese yen, enjoyed an increased demand despite the increased political risks. It is worth noting, that the yen is often used as a protective asset during political and economic crises.

Last weekend, North Korea conducted another test of a ballistic missile, despite the opposition from the world community. The growth of the euro is boosted by the recent positive economic statistics. For example, the data on consumer price inflation for July, presented yesterday, were better than analysts’ expectations.

The data on the German labor market will be published today at 07:55 (GMT), and the preliminary estimate of Eurozone’s GDP for the second quarter of this year will be published at 09:00 (GMT).

Resistance levels: 130,600, 130,900, 131,150
Support levels: 130,148, 129,883, 129,541

Indicator of personal expenses of Americans can provide temporary support to the US dollar

NZD/USD

NZDUSD

Yesterday, the New Zealand dollar rose slightly against its North American counterpart. The New Zealand currency has traditionally reacted to the price of dried milk, which is the country’s main export commodity.

Nevertheless, according to the latest trades, the cost of whole and dried milk has decreased once again. Despite this, the New Zealand dollar continues to rise, which is caused by the weakness of the US currency. It is worth noting that the US dollar is cheaper in a wide range of markets. This is also due to the loss of confidence in the ability of the presidential administration to implement the promised reforms.

Investors continue to sell the US currency against the background of decreasing likelihood of another rates’ increase from the US Federal Reserve. Meanwhile, today’s statistics on personal spending and income of Americans can somewhat change the picture. Along with this, data on the New Zealand labor market will be published today at 22:45 (GMT).

Resistance levels: 0,75246, 0,75506, 0,75697
Support levels: 0,74830, 0,74587, 0,74337

 

Stock market

Today, the world’s most expensive company reports on quarterly results

Apple Inc (AAPL)

Apple

During yesterday’s trading session one of the major stock indexes in the US, the Dow set another historic record. This is facilitated by the positive quarterly statements of the companies included in it. So, today after the close of the regular session, its quarterly report will be presented by Apple.

According to analysts’ expectations, the profit per share should be $ 1.57, while the total revenue is $ 44.89 billion, respectively. It is worth noting that the forecast figures are lower than the same figures for the fourth quarter of 2016 and the first quarter of this year. This is due to the results of the new smartphone iPhone 7’s sales.

Meanwhile, in case of exceeding today’s forecasts of experts, the value of shares may well grow to the maximum values at the level of $ 156.00 per unit.

Resistance levels: 150,23, 151,12, 152,04
Support levels, 145,63

 

Commodity markets

Gold settled at seven-week high

GOLD

Gold

Gold continues to remain at recently reached highs. This is facilitated by the general weakness of the US currency, in which the value of gold is expressed. Precious metal is also supported by the political conflict around North Korea. In addition, the main reason of the USD sad state is investors’ doubts about possibility of another rates’ increase from the Fed this year. Also, another failure of the medical reform last Friday produced additional pressure on the dollar, which in turn, supported gold. Today, the dynamics of trading may be affected by the publication of inflationary expectations for the US economy, which will be presented at 12:30 (GMT).

Resistance levels: 1271,00, 1277,50, 1283,00
Support levels: 1261,00, 1254,60, 1247,50

Daily Market Review – 31/07/2017

The US currency dropped to a two-year minimum

 

Forex

Eurozone’s inflation statistics for July will have a strong impact on the pair’s dynamics

EUR/USD

EURUSD

Last Friday, the pair continued to grow against the background of the falling US currency. This was facilitated by weak data on US GDP for the second quarter in the preliminary assessment. According to the presented data, the indicator was at the level of 2.6%, while analysts expected the value at 2.7%. Thus, the probability of tightening monetary policy this year on the part of the US Federal Reserve has decreased. This puts serious pressure on the US dollar.

In addition, investor’s doubts in the ability of the presidential administration to implement the promised reforms also put pressure on the American currency.

Meanwhile, from a technical point of view, correction may begin in the near future. Along with this, today the dynamics of the pair could be seriously affected by the publication of data on consumer inflation in the Eurozone for July. The statistics will be presented at 09:00 (GMT).

Nevertheless, the publication of data on unfinished housing sales in the US, which will be presented at 14:00 (GMT), may have some influence. Also, do not forget that the long anticipated NFP report will be published this Friday.

Resistance levels: 1,17619, 1,17945, 1,18300
Support levels: 1,16955, 1,16545, 1,16120

 

The expectation of the Australian central bank’s decision will support the national currency

AUD/USD

AUDUSD

The Australian currency is aiming for a two-year highs against the US dollar. This is due to the weakness of the US currency and the positive dynamics of commodity platforms, which defines the course of the Australian dollar.

Meanwhile, a certain pressure on the dynamics of Australia’s currency came from the data on business activity in the manufacturing and services sectors of China. It is worth noting, that these two countries are strategic trading partners. Therefore, the value of the Australian currency directly depends on what is happening in the Chinese economy.

The market participants will be cautious today while expecting the announcement of the results of the Reserve Bank of Australia’s meeting. Traders will learn the regulator’s decision on monetary policy tomorrow at 04:30 (GMT). At the same time, an accompanying statement will be released. Nevertheless, most investors do not expect to find changes in the parameters of monetary policy in the tomorrow release. Therefore, the main focus will be on the accompanying statement.

Resistance levels: 0,80071, 0,80370, 0,80657
Support levels: 0,79560, 0,79260, 0,78885

 

Stock market

The largest pharmaceutical company will release its report tomorrow

Pfizer Inc (PFE)

Pfizer

Tomorrow before the opening of the regular session, Pfizer will present its Earnings Report. According to analysts’ expectations, the EPS will reach the $ 0.66 mark, while total revenue will rise to $ 13.08 billion. If the expectations are fulfilled, the shares’ value may rise to $ 34.00 and higher. Nevertheless, do not forget that recently the uncertainty about the medical reform in the US kept this branch of the American economy in suspense.

Resistance levels: 33,18, 33,34, 33,50
Support levels: 32,84, 32,70, 32,58

 

Commodity markets

Signs of decline in supply support oil

Brent Oil Futures

BrentOil

The “Black Gold” ended the last trading week with a growth of around 1%. This was facilitated by signs of stabilization of the supply and demand balance in the world market. Recently, the countries participating in the OPEC cartel were paying special attention to meeting the terms of the deal to cut production.

At the same time, some of them promise to continue to reduce volumes. In addition, the weakness of the US currency provided a certain support for oil. Meanwhile, according to the information of the service company Baker Hughes, the number of operating drilling rigs in the United States increased again, this time by 2 units. It is the increase in production in the US in the recent years that has become the main reason for the decline in oil prices.

Resistance levels: 53,00, 53,60, 54,20
Support levels: 52,08, 51,30, 50,50