New York Forex Report: U.S. Data Eyed Ahead Of Fed
Littlefish FX | Jul 28, 2016 05:07AM ET
New York Forex Report: After a quiet start to the week yesterday traders turn their attention to upcoming US data over today’s North Atlantic session with Consumer Confidence, Services & Composite PMIs and New Home Sales all slated for release. This data comes ahead of the FOMC July meeting tomorrow where the Fed are widely expected to keep policy on hold and give a muted statement in the wake of Brexit.
FX Majors: EUR dropped to 1.0950 against the USD on Monday, the lowest since 24 June as the USD continued to strengthen amid the market expectations of Fed rate hike. However, EUR/USD erased the previous losses at European session due to the strong German July IFO Business Climate. European bank stress tests on Friday will be a focus as investors concerned about potential capital shortfalls at Italian and Portuguese banks GBP After largely disappointing manufacturing and services PMI numbers, the latest report from Confederation of British Industry pointed to darkening outlook in the manufacturing sector. The gauge of orders for factory goods slumped to -4 in July (June: -2) and a quarterly index of sentiment plunged to -47 in July (April: -5) which was the lowest since early 2009. JPY According to Japan’s July monthly economic report, the economy is on a moderate recovery path with flat private consumption and sluggish consumer confidence. Reflecting generally subdued growth environment in the second quarter, final prints of both leading (May: 99.7 vs April: 100.0) and coincident index (May: 109.9 vs April: 112.0) suggested that domestic demand may remain weak this quarter.
Get The News You Want
Get The News You Want
EUR/USD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish
Get The News You Want
Get The News You Want
Technical: Bears look to challenge 1.09 post Brexit reaction lows. Intraday resistance is sited at 1.10, while 1.1060 caps expect further downside.
Retail Sentiment: Bearish
Trading Take-away: Sidelines
Get The News You Want
Get The News You Want
Get The News You Want
Get The News You Want
GBP/USD
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish
Get The News You Want
Get The News You Want
Technical: .3260 represents symmetry resistance while this area caps expect a retest of 1.30 base, with an equidistant swing objective sited at 1.2875. Over 1.3330 shifts attention back to 1.3550 symmetry swing objective
Retail Sentiment: Neutral
Trading Take-away: Neutral
Get The News You Want
Get The News You Want
Get The News You Want
Get The News You Want
USD/JPY
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish
Get The News You Want
Get The News You Want
Technical: Only a close below pivotal 105.50 threatens near term bullish bias. While this area survives on a closing basis expect another test of 107.50 offers. Below 104.09 symmetry swing support opens 103.50 as the next downside objective
Retail Sentiment: Bullish
Trading Take-away: Sidelines
Get The News You Want
Get The News You Want
Get The News You Want
Get The News You Want
EUR/JPY
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish
Get The News You Want
Get The News You Want
Technical: Testing symmetry swing support sited at 114.49 as this area support expect retest and breach of cycle highs, below 113.50 opens 110.80 as the next downside objective.
Retail Sentiment: Bullish
Trading Take-away: Sidelines
Get The News You Want
Get The News You Want
Get The News You Want
Get The News You Want
Commodities FX: Gold was down for a second day, by 0.5% to $1,315.60 an ounce ahead of the FOMC and BOJ meeting together with the European bank stress test results later in the week. The bullion is likely to be supported near the $1,310 mark. Oil closed lower by 2.4% to $43.13 a barrel and briefly touched below $43 intraday last seen only on 26 April, weighed by returning concerns of a supply glut in crude and refined products. AUD sidelines ahead of inflation figures which could reinforce the occasion for another rate cut as early as next month. Underlying inflation is expected to dip to a fresh trough of 1.4% expected by markets while the figures due tomorrow. The market is pricing in around a 64% chance of a rate cut in August, proposing the biggest move would come if inflation surprised on the high side. CAD hit its weakest level against the USD since March, distressed by a slide in oil prices and the prospect that interest rates will rise faster in the United States than Canada.
Get The News You Want
Get The News You Want
AUD/USD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish
Get The News You Want
Get The News You Want
Technical: .7430 supports, as we continue to rotate in a broader .7660/.7340 range, with .7330 representing symmetry swing support. Intraday resistance is sited at .7550
Retail Sentiment: Neutral
Trading Take-away: Neutral
Get The News You Want
Get The News You Want
Get The News You Want
Get The News You Want
USD/CAD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish
Get The News You Want
Get The News You Want
Technical: 1.32 upside objective achieved, as 1.3140 supports bulls target an equidistant swing objective at 1.3381.
Retail Sentiment: Bearish
Trading Take-away: Sidelines
Get The News You Want
Get The News You Want
Get The News You Want
Get The News You Want
XAU/USD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bullish
Get The News You Want
Get The News You Want
Technical: Testing symmetry swing support sited at 1305, while this area attracts buyers will set a potential platform to challenge and breach 1360 highs en-route to 1391. Below 1300 opens 1270 as next downside objective.
Retail Sentiment: Bullish
Trading Take-away: Sidelines
Get The News You Want
Get The News You Want
Get The News You Want
Get The News You Want
US OIL
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish
Get The News You Want
Get The News You Want
Technical: Break below 44 opens 41.87 as the downside objective, expect 44.50 prior support to act as reisitance, aclose over 47.80 required to ease bearish pressure.
Retail Sentiment: Bullish
Trading Take-away: Short
Get The News You Want
Get The News You Want
Get The News You Want
Get The News You Want
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.