Daily Market Review – 14/07/2016
Bank of England Interest Rate decision will be today’s main market-mover
The GBP fell against the US dollar towards the end of yesterday’s trading session as traders expect the Bank of England to slash the interest rates at today’s meeting scheduled for 11:00 GMT. Almost all leading analysts expect the BoE to ease its monetary policy by either slashing the rates or extending the Asset Purchase Program. If for some reason neither occurs, the accompanying statement will take center. If investors believe it’s too soft, it will put pressure on the pound. Meanwhile, today’s US PPI and Unemployment Claims findings, both of which are scheduled for 12:30 GMT should additionally influence the pair.
Resistance: 1.3236, 1.3296, 1.3336
Support: 1.3131, 1.3045, 1.2970
The pair fell slightly yesterday thanks to a better than anticipated US Fed Beige Book report, which displayed a number of positive dynamics relating to the US economy. Moreover, poor Chinese Trade Balance figures put further pressure on the Australian currency.
This morning so far, Australia’s unemployment rate rose to 5.8%, in-line with expectations. However, poor growth in the nation’s employment section can potentially hurt the Aussie going forward. Interestingly enough, the currency pair (0.7630, +0.29%) is currently rising thanks to solid New Motor Vehicle Sales and Consumer Inflation Expectation reports.
Resistance: 0.7635, 0.7686, 0.7760
Support: 0.7590, 0.7540, 0.7500
JPMorgan Chase (JPM)
JPMorgan Chase, one of the largest investment banks, will release its earnings report today before the US markets open. Analysts expect its earnings per share to reach $1.43, with its revenue totaling $23.94 billion. Although it closed yesterday at 63.16 (-0.06%) in after-hours trading it is listed at 63.34 (+0.28%). If today’s report exceeds expectations, the stock should rise to $64.
Resistance: 63,60, 64,12, 64,66
Support: 62,62, 61,95, 61,37
Brent Oil Futures
Brent oil fell by $2 yesterday, caused the US Department of Energy’s weekly crude oil inventory report. Oil stocks fell by 2.546 million barrels, well short of the expected –3.25 million barrels. Meanwhile, the International Energy Agency (IEA) revised its outlook and reduced its worldwide oversupply forecast. It expects oil market balance to be reached by 2018.
Resistance: 47.17, 47.81, 48.39
Support: 46.10, 45.60, 45.20