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Daily market review

Daily Market Review – 27/07/2017

The results of Fed’s meeting caused the USD to collapse

 

Forex

Today’s economic statistics may support the USD

GBP/USD

GBPUSD

Yesterday, the pair demonstrated a significant growth. This was due to the publication of a preliminary estimate of the UK’s GDP for the second quarter of this year. According to the data presented during the morning session, the indicator was at the forecasts’ level.

Meanwhile, the results of the two-day meeting of the US Federal Reserve were announced. As most analysts had expected, the American regulator did not change the parameters of its monetary policy, keeping rates at the previous levels. Nevertheless, in the accompanying statement, officials noted that they will stick with the course of gradual tightening of credit conditions. Also, the regulator intends to start reducing the balance sheet, which will support the US dollar.

There were no exact dates for the beginning of such a reduction, which put significant pressure on the US currency. Along with this, today the dollar has a chance to reinvent itself, if the data on orders for durable goods will be better than analysts’ expectations. This statistics will be presented today at 12:30 (GMT).

Resistance levels: 1,31576, 1,32000, 1,32330
Support levels: 1,30836, 1,30357, 1,29875

New package of anti-Russian sanctions puts pressure on the RUB

USD/RUB

USDRUB

Recently, the Russian currency has been under pressure. The reason for this dynamic on the one hand is the Bank of Russia’s intention to gradually reduce rates. This makes the RUB less attractive for investors.

On the other hand, the negative dynamics of oil also produces pressure on the Russian currency. It is worth noting, that the energy export is one of the main revenue items of the country’s budget.

Meanwhile, the introduction of a new package of sanctions by the United States can produce strong pressure. This bill passed both chambers of the US parliament and for its legislation only Trump’s signature is needed. Of particular danger for Russian assets is a ban on private investors from the US to invest in Russian debt securities. Thus, most likely the RUB will be under pressure in the medium term.

Resistance levels: 59,43000, 59,67000, 59,94000
Support levels: 58,97000, 58,73000, 58,53700

 

Stock market

The American Internet retailer will present its quarterly results

Amazon.com Inc (AMZN)

Amazon

Today after the regular session, the world’s largest Internet retailer Amazon will present its quarterly report. According to average forecasts of analysts, earnings per share will be $ 1.42, while total revenue should be at $ 31.17 billion. It is worth noting that recently the value of the company’s shares has risen in price significantly. If the actual values exceed forecasts, the market reaction can be the opposite. In case the indicators are confirmed, investors may fixate profits, which will lead to a drop in the shares’ value.

Resistance levels:
Support levels:

 

Commodity markets

Yesterday, the precious metal significantly increased

GOLD

Gold

Gold added $20 to its value during yesterday’s trades. Such dynamics were caused by the general weakness of the US currency. In addition, the US Federal Reserve’s accompanying statement disappointed investors who expected more details about the regulator’s next steps.

Also, gold is supported by its purchases as a protective asset against the background of the possible introduction of new anti-Russian sanctions. This could lead to deterioration of relations between the two countries, which will force investors to look for safer places for their investments.

Meanwhile, trade’s dynamics may be affected by the publication of US economic statistics in the afternoon.

Resistance levels: 1265,00, 1,270,90, 1277,50
Support levels: 1254,60, 1247,45, 1240,00

Daily Market Review – 24/07/2017

The euro is about to grow out of its “old clothes”

 

Forex

Today, the managers’ indexes can provide a significant support to the pair

EUR/USD

EURUSD

Last Friday, the euro continued its growth against the US dollar. This was supported by statements of the ECB’s head Mario Draghi during the regulator’s meeting on Thursday.

In addition, further aggravation of political problems in the US continued to put pressure on the dollar. Against this background, the pair was able to rise to its maximum over the past two and a half years.

Today, the pair’s dynamics may be affected by indexes of business activity in the manufacturing sector and services sector of France, Germany and the Eurozone in general. These data will be presented at 07:00, 07:30 (GMT) and 08:00 (GMT) respectively. It is the positive values of these indicators that can serve as a new driver for further growth of the pair and help it to emerge from the settled range.

Resistance levels: 1,16950, 1,17220, 1,17467
Support levels: 1,16234, 1,15800, 1,15284

Despite weak statistics, the Japanese currency is strengthening

USD/JPY

USDJPY

Recent economic statistics for Japan does not look very positive. The Japanese regulator also reflected on this at its last meeting. This is why the Bank of Japan has kept its policy parameters unchanged. At the same time, once again the regulator pushed back the deadline for achieving the inflation target. Despite all this, the Japanese yen feels much better than the US dollar. The reason for these dynamics is the use of the yen as a traditional protective asset. This, in essence, is facilitated by the never-ending political conflicts in the United States.

Meanwhile, today the publication of data on business activity in the services sector and the US manufacturing sector may have some influence. The data will be published at 13:45 (GMT).

Resistance levels: 111,500, 111,850, 112,420
Support levels: 110,770, 110,350, 109,900

 

Stock market

Today the largest search engine will present its results for the last quarter

Alphabet Inc (GOOG)

Google

Today, upon the closure of the regular session, Google will submit its quarterly report. According to expectations, the profit per share is $ 4.46, and total revenue will reach $ 25.64 billion. Despite strong projected values, the publication of the report may well reduce the value of the shares. The reason for these dynamics may be the fixation of profits after a significant increase in the shares’ value.

Resistance levels: 971,37, 978,31, 983,04
Support levels: 958,65, 953,37, 947,00

 

Commodity markets

Oil has fallen in price reflecting on disappointing news from OPEC

Brent Oil Futures

BrentOil

Last Friday, “black gold’s” quotes fell amid reports of OPEC representatives on the growth of supplies in July. In addition, according to US data, the level of shale mining in the US has reached its maximum values since 2015. This situation will put pressure on oil quotes, despite all the efforts of the OPEC countries. Nevertheless, according to the information of the service company Baker Hughes, the number of operating drilling rigs in the United States decreased by 1 unit over the last week. Meanwhile, the decline was recorded only for the second time in the last 27 weeks. Thus, in the medium term, oil will remain under pressure,  despite the US dollar’s weakness.

Resistance levels: 48,64, 49,32, 49,90
Support levels: 47,80, 47,25, 46,70

Daily Market Review – 20/07/2017

Today’s main event: ECB’s decision on monetary policy

 

Forex

Today the pair will be affected by several factors

EUR/GBP

EURGBP

Yesterday there was no economic statistics released for the European region. Therefore, the pair hardly reacted to external factors. Throughout yesterday’s trading, there were no dynamics recorded.

Meanwhile, today things look more promising. The pair’s dynamics may be impacted by the retail sales’ data in the UK for June, which will be presented at 08:30 (GMT). Nevertheless, the ECB decision on monetary policy will be in the focus of attention.

Most analysts believe that today the European regulator will announce the beginning of the end for the quantitative easing program. If this happens, the euro will receive an additional stimulus to growth. Meanwhile, the upward dynamics may be limited by the recent excessive growth of the euro.

Resistance levels: 0,88718, 0,88990, 0,89314
Support levels: 0,88150, 0,87868, 0,87552

The Canadian currency is getting stronger and stronger

USD/CAD

USDCAD

Recently, the Canadian currency has strengthened significantly across a wide range of markets. This trend is caused by the positive dynamics of oil, which is the main driver for the Canadian dollar. In addition, the rate increase announced at the last meeting of the Bank of Canada also provides support to the national currency.

Meanwhile, the fresh economic statistics is mostly positive. It is worth pointing at the weakness of the US dollar, too. All these factors combined led to a sharp fall of the pair.

Along with these, traders will prepare for tomorrow’s publication of data on retail sales for May and inflation in Canada for June. The expected statistics will be presented tomorrow at 12:30 (GMT).

Resistance levels: 1,26523, 1,27016, 1,27632
Support levels: 1,25775, 1,25420, 1,25000

 

Stock market

Microsoft will present its quarter report today

Microsoft Corporation (MSFT)

Microsoft

Today, Microsoft will present its financial results for the second quarter of this year. According to analysts’ expectations, earnings per share will be $ 0.71, while total revenue will reach $ 27.27 billion. It should be noted that the forecast values exceed the results of the previous quarter. Thus, in case of confirmation, the value of shares may both grow and fall. This is due to the fact that recently the cost of securities of the company has grown too much. Based on published data, investors can close positions for purchase, which will lead to a fall in the shares’ value.

Resistance levels: 74,00, 74,40, 75,00
Support levels: 73,16, 72,39, 71,75

 

Commodity markets

Gold’s prices are stabilized

GOLD

Gold

Gold’s price settled yesterday at the last three months’ maximum. However, there are not enough new drivers for further development of precious metal. The ECB’s monetary policy decision may be such an incentive today. In addition, do not forget that gold often acts as a protective asset during political and financial crises.

Also, this asset is the best way to preserve savings during inflation growth. Meanwhile, today’s publication of the traditional report on the US labor market at 12:30 (GMT) can influence the dynamics of trading.

Resistance levels: 1245,00, 1250,00, 1254,00
Support levels: 1232,00, 1227,40, 1223,45

Daily Market Review – 19/07/2017

The USD is under serious pressure

 

Forex

The euro hit new heights

EUR/USD

EURUSD

Yesterday, the pair has reached its maximum values since May this year. Such dynamics was caused by the sale-off of the American currency which reflected on another voting fiasco for the medical reform. Thus, investors questioned the ability of the presidential administration to carry out the planned reforms. In particular, this applies to the reform of the tax system and infrastructure investments.

Meanwhile, the expectation of tomorrow’s ECB meeting also contributes to the euro’s climb. It is not expected that the regulator’s management will be dealing with interest rates at their tomorrow’s meeting. Along with this, market participants are eager to find any hint at the rapid reduction of the quantitative easing program. This, of course, will support the euro, which can reach new heights against the US dollar.

Nevertheless, today the dynamics of the pair may be somewhat affected by the data on the US real estate market, which will be presented at 12:30 (GMT).

Resistance levels: 1,15686, 1,15900, 1,16146
Support levels: 1,15106, 1,14859, 1,14473

The Bank of England is not concerned about small decline in inflation

GBP/USD

GBPUSD

Yesterday, the British currency collapsed after the release of data on inflation in consumer prices for the last month. According to yesterday’s data, prices demonstrated a zero change in June. Along with this, on per-annual basis, the indicator had a value of 2.6% against the expected 2.9%. It is worth noting that, despite some negative data, representatives of the Bank of England are not too concerned about the indicators’ decline. For your information, the target benchmark of the bank is at around 2%. At the moment, inflation exceeds a pre-set level, which indicates a high probability of further action towards higher rates on the part of the Bank of England. This view is also shared by the head of the Bank of England, Mark Carney. The latter stressed during his yesterday’s speech, that the current data corresponds to the medium-term forecasts of the regulator. Today’s dynamics will depend entirely on the investors’ emotions toward the US currency.

Resistance levels: 1,30620, 1,31132, 1,31540
Support levels: 1,30043, 1,29556, 1,29052

 

Stock market

The quarterly reporting season is at its height

Alcoa Corp (AA)

Alcoa

Today, after the close of the regular session, the “aluminium giant” Alcoa will present its quarterly results. It is worth noting, that for the last three seasons this company does not open the quarterly reporting season, as it did before.

Meanwhile, according to analysts’ expectations, earnings per share will be 0.60 dollars, and total revenue will reach 2.85 billion. In the light of the negative dynamics in commodity markets, which has been observed recently, the financial results of the company may disappoint investors. In any case, today’s dynamics will be under influence of the quarterly results.

Resistance levels: 36,66, 36,96, 37,25
Support levels: 35,80, 35,36, 34,82

 

Commodity markets

Stocks’ growth puts pressure on “black gold’s” price

Brent Oil Futures

BrentOil

Yesterday, oil’s prices improved. This was due to positive forecasts for the growth of energy demand. In addition, general weakness of the US dollar has provided some support for oil. Meanwhile, certain pressure was caused by the report on reserves from the US Petroleum Institute. According to the report, they grew by 1.6 million barrels, while most experts expected them to drop by 3.5 million barrels. Today, the focus will be on a similar report from the US Department of Energy, which will be presented at 14:30 (GMT).

Resistance levels: 49,32, 49,90, 50,40
Support levels: 48,20, 47,40, 46,70

Daily Market Review – 18/07/2017

The Trump Administration seems incapable of conducting the medical reform

 

Forex

Australian Central Bank gives the national economy positive marks

AUD/USD

AUDUSD

Yesterday, the pair declined amid expectations of the protocols from the Australian central bank’s last meeting. Most traders expected that the protocols would indicate the concerns of the regulator’s management about the state of the national economy.

Meanwhile, it appeared that according to the released documents, officials positively assessed the national economy. In addition, the neutral level of interest rates, in their opinion, is at around 3.5%, which is much higher than the current value. This gave a strong support to the Australian currency. Along with this, today it became known that two Republican members of the US Congress refuse to support the bill of medical reform proposed by Trump. This situation casts doubt on the ability of the presidential administration to implement the planned changes.

Against this background, the US dollar came under strong pressure. Thus, most likely, the new bill will not be adopted altogether, which will negatively affect the attractiveness of American assets.

Resistance levels: 0,79300, 0,79646, 0,80016
Support levels: 0,78653, 0,78392, 0,78024

Today the focus will be on inflation data

GBP/JPY

GBPJPY

During yesterday’s trading, the pair was under pressure reflecting on the use of the yen as a protective asset. In addition, traders were preparing for today’s release of data on consumer inflation in the UK. Recently, excessive growth in consumer prices is a concern for the Bank of England’s officials. Such a situation may force the regulator to increase rates, which will positively affect the rate of the British currency. Beside the release of the consumer price index’ data, which will happen at 08:30 (GMT), today the Bank of England’s head, Mark Carney, will give a speech. This speech scheduled at 13:30 (GMT), is expected to affect the further dynamics of the pair.

Resistance levels: 147,110, 147,453, 147,784
Support levels: 146,407, 146,064, 145,626

 

Stock market

Today the largest US bank will present its quarterly report

Goldman Sachs Group Inc (GS)

GoldmanSachs

The quarterly reporting season of US companies officially launched last week. Today, before the opening of the regular session, its quarterly report will be presented by the largest US bank, Goldman Sachs. According to the experts’ expectations, the profit per share will be $ 3.40, while the total revenue will reach $ 7.52 billion. If the actual data exceeds the forecast values, the value of the shares may well rise to the level of 232.00 dollars per unit.

Resistance levels: 230,00, 230,61, 231,61
Support levels: 227,74, 226,92, 226,13

 

Commodity markets

Weak US dollar reanimated gold

GOLD

Gold

Yesterday, quotes of precious metal approached the two-weeks maximum in response to weak US statistics. It is worth reminding, that last Friday, data on inflation in the US was released. According to the published data, the indicators do not reach the target values placed by the Fed, which may make it difficult to postpone the next rate increase. During low rates, the US currency loses in value, which is beneficial for gold.

Today, the trading dynamics will be influenced by the situation around the refusal of some Republican Congressmen to support Trump’s medical reform.

Resistance levels: 1240,00, 1245,00, 1250,00
Support levels: 1232,00, 1227,41, 1223,45

Daily Market Review – 17/07/2017

Recent American statistics raises doubts about Fed’s strategy

 

Forex

The probability of rates increase from the Bank of England is growing

GBP/USD

GBPUSD

The pair grew significantly during Friday’s trades. This dynamic was due to a very negative economic statistics for the US. According to the data presented last Friday, retail sales and consumer prices fell in June. It is worth noting, that the US Federal Reserve closely monitors any changes in consumer prices.

At the same time, the target level of inflation for the US regulator is at the level of 2%. Nevertheless, on Friday the indicator was at 1.6%, which is below the target. Against this background, the probability of the rates’ increase by the US Federal Reserve at the next meeting dropped sharply. Thus, the expediency of the current course of the Fed’s monetary policy was questioned.

Meanwhile, despite Brexit, the economic indicators for the UK are mostly positive. In addition, most analysts are inclined to believe that the Bank of England will soon be able to begin tightening monetary and credit policy. Along with this, traders will prepare for tomorrow’s publication of inflation data in the UK.

Resistance levels: 1,31132, 1,32540, 1,31599
Support levels: 1,304825, 1,30173, 1,29829

The New Zealand dollar is too expensive

NZD/USD

NZDUSD

On Friday, the New Zealand currency sharply increased against its US counterpart, reacting on weak data from the report on consumer inflation. Also, the New Zealand currency was supported by the positive dynamics of commodity platforms. Meanwhile, today it became known that business activity in the services sector of New Zealand declined this month. In addition, during today’s speech, the deputy governor of the Reserve Bank of New Zealand, Jeff Bascand, noted that the national currency is too high. This, in his opinion, hinders balancing of the country’s GDP and the reduction of budget arrears.

Meanwhile, further dynamics of the pair will be influenced by the expectation of the release of data on consumer inflation in New Zealand for the second quarter of this year. This data will be presented at 22:45 (GMT).

Resistance levels: 0,73567, 0,73768, 0,74027
Support levels: 0,73101, 0,72811, 0,72532

 

Stock market

The first quarterly reports disappointed investors

Dow Futures

Dow

On Friday, the major US stock indexes rose, despite disappointing statistics on the US economy. For example, inflation indicators did not reach the average forecasts of experts. In addition, retail sales also pointed to weak demand from Americans. This situation may cause the US Federal Reserve to postpone the next rate increase, which is beneficial for the stock market. It is worth reminding, that at low rates, loan servicing is cheaper for investors.

Meanwhile, the quotes’ growth is restrained, because investors are traditionally cautious during the quarterly reporting season.

Resistance levels: 21626,84, 21656,40, 21684,55
Support levels: 21555,78, 21519,55, 21478,30

 

Commodity markets

“Black gold’s” quotes rose on positive forecasts

Brent Oil Futures

BrentOil

During Friday’s trades, oil’s price slightly increased, which was due to higher oil demand forecasts from the International Energy Agency. Meanwhile, the growth of quotes is limited, as the supply on the world market exceeds demand. At the same time, it was the largest weekly decline in oil reserves in the last 10 months recorded in the US storage facilities.

Nevertheless, the activity of shale developers in the US is at a high level. This was reflected in the report on the number of operating drilling rigs in the USA from the service company Baker Hughes. According to their data, the number of drilling rigs increased by 2 units last week. Today, fluctuations in the exchange rate of the US currency may have some influence on the dynamics of trading.

Resistance levels: 49,32, 49,90, 50,40
Support levels: 48,20, 47,40, 46,70

Daily Market Review – 13/07/2017

The mid-year report from the US Federal Reserve disappointed investors

 

Forex

Positive statistics on the US economy can only briefly preserve the USD

EUR/USD

EURUSD

The main event of yesterday was the speech of US Federal Reserve Chairman, Janet Yellen, before the Congress. She delivered the six-month report on monetary policy. It is worth noting that, despite the positive feedback on the US economy, investors did not find this report very convincing.

Meanwhile, the regulator’s management does not intend to abandon plans to further increase rates and gradually reduce the bank’s balance sheet. Nevertheless, the first reaction of the pair was growth, which later went into decline. Yesterday, there were no reasons observed for the euro’s fall. Most likely, such a dynamics was caused by technical signals. Also, the data on the Eurozone’s economy, presented yesterday, were positive.

Today, in addition to the Fed’s head presenting again, market participants expect the publication of traditional data on the US labor market. And tomorrow, market participants expect publication of the consumer price inflation’s data.

Resistance levels: 1,14672, 1,14900, 1,15291
Support levels: 1,14159, 1,13685, 1,13310

The Australian currency grows for the third consecutive session

AUD/USD

AUDUSD

During yesterday’s trading, the Australian currency continued to grow. Such dynamics was caused by the weakness of the US dollar in response to less than convincing report of the US Federal Reserve’s Chairman, delivered yesterday before the Congress. The Australian currency was also supported by the positive dynamics of the raw commodity markets. It is worth noting, that Australia’s currency directly depends on the price of basic commodities, such as iron ore, coal and wheat. In addition, this morning, China’s trade balance data were released. That is important, since China is Australia’s strategic trading partner. The presented data were higher than the experts’ expectations, which supported the Australian currency. Further dynamics of the pair will depend entirely on the investors’ feelings toward the US dollar.

Resistance levels: 0,77201, 0,77417, 0,77600
Support levels: 0,76848, 0,76668, 0,76530

 

Stock market

The quarterly reporting season in the US starts tomorrow

JPMorgan Chase & Co (JPM)

JPMorganChase

Today before the opening of the regular trading session, one of the leaders of the US banking, JPMorgan Chase will present its quarterly report. This report will give an official start to the season of quarterly reporting in the US. According to the experts’ expectations, the profit per share will be $ 1.59, while the total revenue will be at the level of $ 24.96 billion. If the actual data exceed the forecast values, the value of the shares may well rise to the level of $ 95.00 per unit.

Resistance levels: 93,36, 93,90, 94,50
Support  levels: 91,85, 91,10, 90,50

 

Commodity markets

Gold receives support from the weakness of the US currency

GOLD

Gold

Gold’s price is growing for the third consecutive session, while being supported by the weakness of the US currency. It is worth reminding, that gold’s value directly depends on the exchange rate of the American dollar, in which it is expressed. Recent statements by Fed’s officials failed to persuade investors to buy the dollar in hopes of a rapid rates’ increase from the central bank of the United States. On the other hand, investors resort to traditional protective assets, such as gold, in the light of political scandal surrounding the US President’s eldest son. Today, the trading dynamics may be affected by the publication of US statistics and another speech of the Federal Reserve’s head, Janet Yellen.

Resistance levels: 1225,70, 1229,20, 1235,00
Support levels: 1217,80, 1213,50, 1209,10

Daily Market Review – 12/07/2017

The Fed Chairman’s speech may stop the USD’s fall

 

Forex

Bank of Canada can raise interest rates at today’s meeting

USD/CAD

USDCAD

Yesterday, the trading dynamics were mainly influenced by political factors. For example, during yesterday’s trades, traders paid attention to the information published by the eldest son of the American president about Russia’s involvement in the presidential election. However, the market had only a low-key reaction.

Meanwhile, during the speech of US Federal Reserve officials, the market participants once again became convinced of the regulator’s determination to increase the rates. Also, some market participants are speculating on the possibility of monetary policy tightening by the Bank of Canada at today’s meeting. Their decision will become known to the public today at 14:00 (GMT) and an accompanying statement will be released.

At the same time, if the parameters of the policy remain unchanged, the main event of today will be the head of the Federal Reserve Service’s speech for the Financial Services Committee of the House of Representatives. In this annual report, market participants will try to find hints on the further steps of the regulator.

Resistance levels: 1,29322, 1,29548, 1,29926
Support levels: 1,28852, 1,28610, 1,28272

 

The labor market statistics will support the GBP

GBP/USD

GBPUSD

Yesterday, the British currency significantly fell against the USD. This dynamic reflected on the speech of the Bank of England official, Broadbent. In his speech, he completely ignored the topic of monetary policy. Nevertheless, the market participants expected to hear a tougher position from one of the regulator’s leaders.

On the other hand, the speech of the US Federal Reserve officials fully justified the market’s expectations. Meanwhile, the dynamics of trading may be affected by the data on the British labour market, which will be presented at 08:30 (GMT). Also, the chairman of the governors’ board of the Federal Reserve, Janet Yellen, will present the semi-annual report on the monetary policy today at 14:00 (GMT).

Resistance levels: 1,28618, 1,29081, 1,29585
Support levels: 1,28147, 1,27869, 1,27545

 

Stock market

Investors are cautious before the speech of the Fed’s head

S&P500 Futures

SP500

During yesterday’s trades, the major US stock indexes did not show any dynamics. Meanwhile, during the American session, the US securities market was under pressure amid reports of Trump’s links with Russia. Also, investors were focused on stocks’ data on the US wholesale trade for May. According to the data presented, the indicator was slightly higher than analysts’ expectations, indicating at the slight decrease in consumer activity in the US at the same time. In addition, the report on the number of open vacancies recorded lower levels of indicators than experts predicted.

Resistance levels: 2427,00, 2432,00, 2436,30
Support levels: 2418,90, 2414,90, 2410,20

 

Commodity markets

Black gold crushed again

Brent Oil Futures

BrentOil

“Black gold” quotes added about $2 to its value on the basis of yesterday’s trading. This was due to technical factors and some weakness of the US dollar. Meanwhile, the growth is limited by the production’s increase in Libya and Nigeria, which are exempt from the terms of the deal to cut production. Nevertheless, some support for oil was provided by the report on oil reserves from the US Petroleum Institute.

According to the report, reserves fell by 8 million barrels against the expectation of its reduction by 3 million. Along with this, today a similar report will be presented by the US Department of Energy at 14:30 (GMT).

Resistance levels: 48,50, 49,16, 49,85
Support levels: 47,20, 46,30, 45,80

Daily Market Review – 10/07/2017

The US currency starts new trading week on a high

 

Forex

Calls to reduce the stimulus program supported the euro

EUR/USD

EURUSD

Last Friday the pair fell against the background of positive statistics on the US labor market. According to the data presented, the NFP indicator in June reached 222 thousand against analysts’ expectations of 179 thousand. However, the unemployment rate came back as 4.4% against the forecasts of around 4.3%. Also, wages rose by 0.2%, which was below experts’ expectations at 0.3%. In general, the released data pointed to the strength of the US labor market, which can support the Fed’s decision of further rates’ increase.

On the other hand, calls by ECB officials to start exiting the stimulus program will also support the single currency. Nevertheless, today the dynamics of the pair could be influenced by the indicator of investor confidence’s data from the Sentix eurozone, which will be released at 08:30 (GMT). Also, the data on the US labor market’s conditions index will be presented at 14:00 (GMT).

Resistance levels: 1,14412, 1,14755, 1,15290
Support levels: 1,13685, 1,13310, 1,12906

The Japanese currency is under pressure

USD/JPY

USDJPY

Last Friday trading session began with the Bank of Japan’s announcement on increasing purchases of government bonds. This led to a sharp drop of the Japanese yen. Following this, the pair’s growth was supported by positive data on the US labor market. Meanwhile, data for orders for machinery and equipment in Japan for May was released late yesterday night. The data underperformed compare to analysts’ expectations. Also, the pressure on the yen came as a reaction on the speech of the Bank of Japan’s governor. In his speech, he said that the soft monetary policy will continue for as long as necessary to achieve the set inflation targets.

Today, the pair will be influenced by changes in the exchange rate of the US currency in response to external factors and economic news.

Resistance levels: 114,363, 114,735, 115,000
Support levels: 113,496, 113,112, 112,732

 

Stock market

The main stock markets of Europe are trading on raise

FTSE Futures

FTSE

Last Friday, European stock markets were trading without uniform dynamics. Nevertheless, according to the results of the trading session, they were able to register a slight increase. Investors were cautious in the light of the G20 summit and the coming weekend. Meanwhile, some support was provided by data on industrial production in France and Germany in May. At the same time, further growth of stock markets is limited by the European officials’ appeals to curtail the incentive programs. This implies an increase in lending rates and a narrowing of the asset purchases’ program, which is not profitable for the stock markets.

Today, the trading dynamics may be influenced by the long-expected release of companies’ corporate reports.

Resistance levels: 7333,00, 7346,90, 7359,90
Support levels: 7289,70, 7273,20, 7252,60

 

Commodity markets

“Black gold” crushed again

Brent Oil Futures

BrentOil

Last Friday, oil quotes fell by more than 3% against the background of new signs of increased production in the US. In addition, according to the latest data, OPEC countries exported more oil in June than in the previous month. At the same time, the service company Baker Hughes has submitted a report according to which the number of operating drilling rigs in the US increased by 7 units last week. Also, the growth was observed for the 24 weeks out of the last 25. It is worth noting, that the US dollar growth puts pressure on oil. Today, the trading dynamics will be influenced by the balance of supply and demand in the world oil market.

Resistance levels: 47,35, 48,00, 48,50
Support levels: 46,30, 45,70, 45,20

Daily Market Review – 6/07/2017

Fed’s meeting minutes disappointed traders. Now it’s time for the ECB meeting!

 

Forex

Further moves from the ECB leaders can support the euro

EUR/JPY

EURJPY

During yesterday’s morning session, the euro strengthened against the background of positive statistics on the Eurozone economy. According to yesterday’s data, the Eurozone services sector’s business activity over-performed compare to the forecasts of experts. In addition, retail sales in May hit this year highs.

Nevertheless, the geopolitical risks associated with the new test of North Korean ballistic missile forced investors to buy yen as a protective asset. Today, the main attention will be focused on the publication of the ECB’s minutes from their last meeting. Investors will try to find obvious hints at the terms of tightening monetary policy. During the annual ECB forum, representatives of the central bank, including its head Mario Draghi, spoke in favor of the rapid exit of the quantitative easing program. This provided a substantial support to the euro.

Resistance levels: 128,600, 129,076, 129,580
Support levels: 127,869, 127,438, 126,970

Positive NFP report could put extra pressure on the pair

AUD/USD

AUDUSD

Yesterday, the Australian currency continued to decline reflecting on results of the central bankers’ final meeting the day before. Market participants expected more rigid approach from the Governing Council.

Nevertheless, according to the accompanying statement, officials consider the Australian dollar too expensive. In addition, the pressure on the pair came from large-scale strengthening of the US dollar across a broad spectrum of the market. Meanwhile, the last meeting’s minutes from the US Federal Reserve, published yesterday, did not provide significant support to the US currency. Today, the focus of attention is on the US statistics, which will be presented in the afternoon. Along with this, market participants will prepare for tomorrow’s publication of the NFP’s main report.

Resistance levels: 0,76261, 0,76464, 0,76696
Support levels: 0,75747, 0,75585, 0,75385

 

Stock market

The major US stock indexes closed mostly in positive territory

S&P500 Futures

SP500

After the day-off, the US stock markets opened on positive, with some help from the country’s economic statistics. In particular, according to the Institute for Supply Management, business activity has grown significantly in the past month. Meanwhile, investors paid attention to the minutes from the last meeting of the US Federal Reserve. Those, however, did not contain clear dates for the beginning of the reduction of the regulator’s balance.

Moreover, according to some managers, the beginning of the balance reduction will indicate the regulator’s commitment to a more stringent policy, which can cause unrest across the markets. Along with this, today investors will closely monitor the US economy’s statistics.

Resistance levels: 2432,00, 2436,30, 2441,20
Support levels: 2423,80, 2418,95, 2414,90

 

Commodity markets

Gold’s price dropped to an eight weeks minimum before bouncing back

GOLD

Gold

The large-scale strengthening of the US currency put pressure on the precious metal quotes. Stock markets’ growth also did not help to attract investment in gold, which does not bring interest income. Meanwhile, by afternoon, the dynamics changed dramatically. This was facilitated by the escalation of political tension around North Korea. Also, Fed’s meeting minutes contributed to fixing profits on gold sales. Nevertheless, today investors will be cautious about opening new positions while expecting tomorrow’s NFP report.

Resistance levels: 1230,00, 1235,60, 1240,80
Support levels: 1220,00, 1215,00, 1209,00