Daily Market Review — 05/07/2016
Bank of England Governor Mark Carney will influence the Forex market with his speech at 9:30 GMT
With yesterday being American Independence Day, the Aussie strengthened significantly against the US dollar. This morning however, it is an entirely different story. The Australian Trade Balance report came and the results were worse than expected. Additionally, Australia announced its interest rate decision (1.75%) and as was expected no changes were made. Both of these events expectedly caused the AUD/USD to plummet. Currently it is listed at 0.7520 (-0.27%). Today at 14:00 GMT the US Factory Orders report should influence the pair.
Resistance: 0.7543, 0.7596, 0.7644
Support: 0.7472, 0.7440, 0.7380
Yesterday the pair displayed mixed results, with worse than anticipated UK PMI findings putting significant pressure on the pair. Additionally, the pound is still feeling the negative aftereffects from the Brexit. Furthermore, Bank of England Governor Mark Carney caused the pair to fall even further as he indicated that an interest rate slash is on the table. Despite this, the GBP did bounce back. Today’s main impact will come via the U.K. Services PMI, scheduled for 8:30 GMT and an upcoming statement from BOE Governor, Mark Carney at 9:30 GMT.
Resistance: 1.3292, 1.3347, 1.3403
Support: 1.3206, 1.3125, 1.3050
Major European stock indexes including the FTSE 100 fell yesterday as a fall in Italian bank shares heavily contributed. Additionally, with investor sentiment in the Eurozone area changing for the worse and a poorer than expected UK Construction PMI it will be interesting to see where these stock indexes will be headed. However, the FTSE 100 did receive a boost as corporate taxes were reduced. Today’s trading dynamics will depend on the UK Services PMI.
Resistance: 6514.90, 6558.20, 6598.00
Support: 6458.10, 6424.90, 6381.90
Gold prices continue to rise as many believe the Fed will not raise the rates this year due to the results of the Brexit. Leading analysts feel until central bank heads ultimately decide to tighten monetary policy gold prices will continue to trend upwards. Today’s trading will be influenced by the US Industrial Orders report, scheduled for 14:00 GMT.
Resistance: 1347.55, 1356.96, 1367.15
Support: 1335.50, 1327.50, 1317.00