Daily Market Review — 13/07/2016
Bank of Canada Interest Rate Decision will be today’s main event
The Canadian dollar strengthened significantly against its US counterpart thanks to an uptick in oil prices. Leaks in pipelines in Africa and Middle East caused some problems with supplies. Additionally, worse than expected data on U.S. JOLTs job openings impacted the market. Today the Bank of Canada’s interest rate decision scheduled for 14:00 GMT will influence today’s trading dynamics. Most experts don’t expect regulator to change monetary policy parameters. Furthermore BoC head Stephen Poloz will kick off the accompanying press conference today starting at 15:15 GMT.
Resistance: 1.3094, 1.3139, 1.3187
Support: 1.3016, 1.2964, 1.2914
Yesterday the pair trend mixed. Now traders are eagerly anticipating the upcoming interest rate meetings as they will almost definitely impact the market in some shape or form.
Today’s trading dynamics will heavily depend on Eurozone Industrial Production data, scheduled for 9:00 GMT and reports from the US − Beige Book and the Federal Budget Balance. Both of which are scheduled for 18:00 (GMT).
Resistance: 1.1112, 1.1185, 1.1242
Support: 1.1023, 1.0972, 1.0914
Major European stock indexes grew for the fourth consecutive session as investors reacted to the latest news from the UK. Theresa May will now take the place of David Cameron as the nation’s Prime Minister. The markets are in flux at the moment as traders are waiting to see if and when central banks provide more stimulus packages to revive and spur on their respective economies. Tomorrow the Bank of England will announce its official interest rate and most feel that it will be cut. Despite the fact that earnings season commenced in the US, the impact will be quite limited as more pressing factors should influence the market.
Today, the DAX’s trading dynamics will widely depend on the Eurozone Industrial Production report, scheduled for 09:00 GMT.
Resistance: 10004.50, 10085.40, 10170.20
Support: 9913.80, 9834.90, 9746.20
Gold fell during yesterday’s session as investors turned their attention to other assets. Additionally, more analysts believe that Friday’s stellar NFP report increases the chance of a rate hike this year. This is of course causing a drop in demand for the precious metal.
Today, the US will publish two important reports – Fed’s Beige Book and Federal budget balance, scheduled for 18:00 GMT. Both should impact gold prices.
Resistance: 1344.35, 1359.91, 1375.26
Support: 1326.95, 1306.48, 1294.19