Market Roundup
- US June Manufacturing capacity use rate revised to 75.8% from 77.2%.
- US June IP revised to +0.2% from +0.3%.
- Philadelphia Fed wage & benefit cost index 24.3 in July v 35.1 in June.
- Philadelphia Fed non-Manufacturing full-time employment index -5.4 in July v 27.0 in June.
- BOE’s Carney reiterates decision on when to raise rates likely to come to sharper relief at turn of year.
- BOJ’s Kuroda: Japan’s inflation to accelerate “considerably” in coming months.
- BOJ’s Kuroda: see no need for extra quantitative easing now.
- NY Fed Liberty Street blog on rising USD effect on GDP.
- S&P revises Greece sovereign credit outlook up to stable from negative; current rating is CCC+.
- Greek bailout talks to be wrapped up by Aug 20 (Govt spokeswoman).
- UK Finance Ministry will reduce number of MPC meetings from 12 to 8.
- Brazil poll: Rousseff popularity still falling, impeachment favored.
Looking Ahead – Economic Data (GMT)
- 01:30 Australia CPI QQ* Q2 f/c 0.8%, 0.2%-previous
- 01:30 Australia CPI YY* Q2 f/c 1.7%, 1.3%-previous
- 01:30 Australia RBA Weighted Median CPI QQ* Q2 f/c 0.5%, 0.6%-previous
- 01:30 Australia RBA Weighted Median CPI YY* Q2 f/c 2.3%, 2.4%-previous
- 01:30 Australia RBA Trimmed Mean CPI QQ* Q2 f/c 0.6%, 0.6%-previous
- 01:30 Australia RBA Trimmed Mean CPI YY* Q2 f/c 2.2%, 2.3%-previous
Looking Ahead – Events, Other Releases (GMT)
- 03:05 Australia RBA Governor Stevens speaks at the Anika Foundation Luncheon
Currency Summaries
EUR/USD
EUR/USD is supported around 1.0809 levels and currently trading at 1.0953 levels. It has made session high at 1.0967 and low at 1.0949 levels. The pair rebounded from 3- month lows against the US Dollar in the early US session, the pair gained more than 100 pips since the opening of New york session and hit daily high at 1.0968 (38.2% retracement level). The pair retreated back after hitting daily resistance level at 1.0968 and moving downwards to test support level at 1.0915 (23.6% retracement level), despite the rally, the pair is set to fall in the in the coming days, as the US rate hike speculation mounts pressure on Euro. The Euro was up by 1.1% against the US dollar at 1.0943, to the upside, immediate resistance can be seen at 1.0971. To the downside, major support level is located at 1.0819. Overall trend of this pair remains bearish in the short and medium term.
GBP/USD
GBP/USD is supported around 1.5527 levels and currently trading at 1.5562 levels. It has made session high at 1.55576 and low at 1.5534 levels. The cable is trading in a very choppy range moving between 1.5578 and 1.5538 ranges. Despite the major pairs advancing against the dollar, the cable failed to advance against the dollar in the US session. Traders are awaiting BoE Governor Mark Carney’s tone in the BOE minutes scheduled later in the day, all eyes will be on BoE Governor Mark Carney, as he surprisingly made hawkish comments last week that, interest rates may be raised as early as November this year. To the upside, immediate resistance can be seen at 1.5601. To the downside, major support level is located at 1.5550.
USD/CHF
USD/CHF is supported around 0.9554 levels and currently trading at 0.9579 levels. It has made session high at 0.9584 and low at 0.9558 levels. The pair started to fall after, Euro started to rebound from 3-month low against the dollar. In the New York session the pair fell from 0.9601 and hit daily lows at 0.9561. The pair hit daily lows, after 3-days continues rally, dollar lost its momentum due surprise greenback sell off by traders and weaker Dollar index. The Swiss franc almost gained 50pips in the New york session, later it bounced off after hitting daily support level at 0.9561 (23.6% retracement level) to gain from losses suffered earlier. The dollars bullish momentum is set to continue as the rate hike talks from the Fed’s will put this pair under bullish pressure in the coming days. To the upside, immediate resistance can be seen at 1.5601. To the downside, major support level is located at 1.5550.
USD/JPY
USD/JPY is supported around 123.24 levels and currently trading at 123.87 levels. It has made session high at 124.91 and low at 123.74 levels. Dollar lost its momentum against yen after holding steading gains for over a month. The pair fell from 124.15 levels to hit daily lows at 123.73. The dollar was broadly lower after, dollar index turned lower against basket of five currencies. The dollar almost lost 50 pips against Japanese yen in the New York session. Dollar is set to advance against Japanese yen as, rate hike talks from Fed will put strong bullish pressure on this pair. Federal Reserve Chair Janet Yellen said last week that the Fed is likely to raise rates at some point this year. To the upside, immediate resistance can be seen at 124.46. To the downside, major support level is located at 123.51. Overall trend of this pair remains bullish in long term.
The material has been provided by InstaForex Company – www.instaforex.com