Market Update – 14-07-2016
AvaTrade | Jul 14, 2016 05:27AM ET
EUR/USD – moved up and is trading near the resistance around the 1.1116 level once again. Industrial production in the Eurozone dropped 1.2% which doesn’t bode well. We will get some data out of the US today as well, but tomorrow will be more important with inflation data out of Europe and the US as well as retails sales data out of the US.
USD/JPY – yesterday we saw another attempt to break through the resistance around the 104.9 level which failed. This morning we are seeing another attempt to conquer this level, which appears to succeed. The main reasons we are seeing the JPY lose strength are due to the expectation of some serious stimulus and possible other measures as well, in addition to a general willingness to take more risk at the moment, as there is more optimism in the market. This could quickly change tomorrow if the Chinese GDP data disappoints.
GBP/USD – dropped yesterday as the focus shifted towards the interest rate decision of today, where we expect a rate cut and also comments that we could see further cuts later this year. In case the BOE surprises and doesn’t cut the interest now, it is highly likely to do so soon.
USD/CAD – moved sharply down after the monetary report of the BOC and the rate decision. This comes even though the BOC has cut the GDP forecast for 2016 and 2017. The reason is that overall the report was expected to be more dovish and also that the Brexit would have a greater effect, but the BOC foresees only a very minimum effect on the Canadian economy.
AUS/USD – moved up after the employment data showed that full employment as well as the participation rate went up.
h3 Indices/h3S&P 500 – was pretty much unchanged after hitting a new intraday high. It was under pressure due to the drop of the energy sector.
h3 Commodities/h3
Get The News You Want
Gold – with the expectation that the BOJ and the BOE will act to support the economy with different measures, gold is moving down again, as it creates some less insecurity in the market.
Oil – moved sharply down yesterday in the aftermath of the inventories. The inventories dropped less than expected, but didn’t show a build as the crude stock of the previous day. However, we saw production in the US increase again and this has also helped oil to move down towards the support around the 44.42 level, before moving a bit up again. In addition the IEA said that production from OPEC is at an 8 year high and this is offsetting the lower production in the US. Overall we can see that there is still a lot of oil floating in the market and it will take a good amount of time before that oversupply will be behind us.
Amazon (NASDAQ:AMZN) – is trading near its all-time high reached only a few days ago. It also announced that the amount of order on its yearly (this is the second time) Prime Day was 60% higher than the previous year, making it the busiest day on record for the company.
JP Morgan – will be releasing its earnings report today.
Teva – announced that it has extended the deadline for its acquisition of Allergan (NYSE:AGN_pa) back by 3 months, even though it expects it to happen this month.
/h3
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.