Market Update – 15-07-2016
AvaTrade | Jul 15, 2016 03:23AM ET
EUR/USD – broke through the resistance around the 1.1116 level in the wake of the BOE decision and moved below this level again after stronger than expected data out of the US. This morning we are trading above this level again after the data out of China was also better than expected. We will be looking out for the inflation data out of the Eurozone and the US.
USD/JPY – continues to move higher after breaking through the resistance around the 104.9 level. The expected stimulus is definitely what is causing the JPY to weaken, as well as improved sentiment, especially after the Chinese data this morning was also better than expected.
GBP/USD – moved up after the surprise decision by the BOE not to cut the interest rate at the moment even though this was widely expected after the Brexit vote. It is highly likely that monetary policy will be loosened in August as indicated in the meeting minutes. We are currently nearing the highest level since the Brexit vote.
AUS/USD – is continuing its upwards trend after the stronger than expected Chinese data.
h3 Indices/h3S&P 500 – it appears there is no stopping the S&P from moving higher. The earnings so far have been positive and also China provided some extra impulse.
h3 Commodities/h3Gold – we can see gold continue to drop as the need for a safe haven is declining amid improved market sentiment. We can clearly see the correlation between gold and another safe haven, the JPY.
Oil – is once again struggling with the resistance around the 48.81 level and was unable to breach this level. It will be interesting to see if we continue to see the number of active rigs increase as has been the case over the last few weeks.
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Bayer (DE:BAYGN) – is not giving up in its attempt to take over Monsanto (NYSE:MON), after being rebuffed the first time. It has now increased its offer to $54.7 billion as Monsanto is also in talks with BASF.
/h3
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