Daily Market Review — 09/07/2015
Silver Lining of the Greek Crisis
Since last night the pair has risen in value. There were two major reasons for that. First, it seems like the Greek impasse is going to the end and Athens is committed to a compromise. Also yesterday, Greece submitted a formal request for financial assistance to the European Stability Mechanism.
Second, the release of Minutes from June 16-17 FOMC Meeting hit the US dollar and supported the single currency. It once again showed the Fed’s “dovish” position regarding future interest rates hike.
Today the market is focused on Initial Jobless Claims at 12:30 GMT (forecast 277K, previous 281K). Special attention will be also drawn to the morning release of German Trade Balance statistics.
The pair is likely to face resistance level at 1.1100. It is likely that before the announcement of any significant news from Greece, the EUR/USD will be traded in the channel between 1.1100 and 1.1040.
The Russian government published statistics on the export of electricity and aluminum, which has grown considerably. However, the import of machinery fell substantially.
Following the rapid falling in the Chinese market and investors leaving its market, the Russian stock market fell as well. Despite claims by the Kremlin that these events will have no impact on the Russian market, investors seem to think otherwise.
Continuation of negotiations on Iran’s resumption of oil exports has not added any optimism.
From a technical perspective, showing steady growth yesterday, the pair has stopped near 57.00-57.50 where the level of resistance is situated. How confident the USD/RUB will face it, will be decisive for today’s trading. In the long term, the ruble tends to continue falling to the area around 60.00.
The event of the day was a yesterday’s shutdown of the NYSE due to technical issues. After an hours-long halt it resumed trading. The S&P fell by more than 1.5%.
Today, the market will closely monitor the data on Initial Jobless Claims at 12:30 GMT (forecast 277K, previous 281K), which will be released in 12:30 GMT.
Trading levels at 2075.00, 2057.00-2060.00 and 2050.00 remain key for short-term trading.
The main focus of the investors yesterday was a release of statistics on the US Crude Oil Inventories. They turned out to be higher than forecast. Again.
Brent Oil faced the resistance level at 57.70-57.80. Its breakthrough is unlikely, but if it happens it will likely be followed by a reverse rebound.