Daily Market Review — 08/07/2015
Collapse is Knocking on the Greek Door
Hope that the Greek problem can be solved initially boosted the euro, but disappointment soon followed and pushed the EUR down. Leaders of the Eurozone set Greece a Sunday deadline to come up with new economic measures if the country wants to avoid defaulting and crashing out of the currency union.
In addition to Greece and the morning meeting of the Eurogroup, today’s focus will be the report on US Crude Oil Inventories at 14:30 (GMT) (forecast -1 million Barrels) and the release of Minutes from the June 16-17 FOMC Meeting at 18:00 (GMT).
The pair has a proven resistance line at 1.1040. If the market break through it, it likely won’t be followed by consolidation and using this level as a support line. However, a drop below 1,0980-1,0990 may delay the single currency below for a long time. Traders will use any news as their prime signal for trading.
The data on imports of industrial goods was released yesterday in Russia. In January-May imports fell by 40% comparing to the same period last year. Moreover, the deficit of the Russian budget for the first five months of the year turned out to be RUB845.745 billion higher.
As we’ve seen in the last few days, the tone of the market has been set by ongoing negotiations with Iran about the lifting of sanctions on oil exports; as well as statistics from the US
The US stock market rose moderately yesterday. The rapid fall in the Chinese market, which has lost about $ 2.9 trillion in three weeks forced many investors to leave China, and to shift their money to other markets. The US market may become a temporary shelter for some of them.
Today’s attention will be directed toward the statistical data in the United States: Crude Oil Inventories and Minutes from June 16-17 FOMC Meeting.
Today, the S & P is likely to face resistance level at 2057.00-2060.00. How well the market will overcome it will set the technical tone for today’s trading.
The price of gold fell below $1,150, reaching 3-month low. Confidence of gold prices being able to go through this area, and in which direction they jump off, will set the direction of movement of the market today.
Despite the Greek crisis and the fall of the Chinese market, investors don’t consider gold as a safe haven yet.