UK Monthly GDP Set To Rise
ORBEX | Jul 10, 2018 04:37AM ET
The British pound was seen losing 0.47% on the day on Brexit related developments. First, the UK’s Chief Brexit negotiator, David Davis resigned which was later followed by the UK’s foreign minister, Boris Johnson resigning as well.
The exit of the two key figures was however seen by many as the UK’s ability to opt for a soft Brexit with the EU.
On the economic front, data was limited on the day. German trade balance was seen at 20.3 billion euro, matching estimates and posting a slight increase from 19 billion euro registered the month before.
Looking ahead, the economic data for the day will see the start of the first release of the UK's monthly GDP numbers. Forecasts show that the economy expanded at a pace of 0.7% following a 0.5% decline the month before.
Simultaneously, the manufacturing, industrial and construction output reports will be coming out. All three sectors are expected to show a modest rebound in activity.
Data from the Eurozone is relatively quiet for the most part.
The NY trading session is light with the release of Canada's housing starts and building permits report.
EUR/USD intra-day analysis
EUR/USD (1.1745):The EUR/USD currency pair was seen giving up some of the gains made on Monday. After rallying to intraday highs of 1.1790, the common currency gave up part of the gains. In the near term, we expect the EUR/USD to extend the declines toward 1.1688 where support is likely to be established. With price action trading steadily within the rising price channel, we expect to see a short term correction. A rebound off the 1.1688 support level could trigger renewed upside in price.
USD/JPY intra-day analysis
USD/JPY (111.11):The USD/JPY currency pair was seen posting a strong reversal as price action moved back above the resistance level of 110.62. The current gains are expected to hit the previous highs near 111.13. There is scope for price action to post a reversal here as USD/JPY could settle in a range within the levels mentioned. A breakout from these levels could trigger the next direction in the currency pair.
Get The News You Want
XAU/USD intra-day analysis
XAU/USD (1259.01):Gold prices extended the gains to hit the 1263 level of resistance. The bullish flag pattern seems to be validated but we expect a near term pullback. Gold prices are likely to retest the breakout level around 1256. A reversal off this level could signal further upside in price. However, gold prices will need to breakout above 1263 resistance level in order to target the 1273.47 region which marks the measured move of the bullish flag pattern.
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.