Daily Market Review – 19/07/2016
UK CPI will be today’s main market mover
Although the pair traded with mixed results yesterday, the Sterling ultimately rose after Martin Weale, a Bank of England policy maker expressed doubt over the need to cut the nation’s interest rates. This sentiment stems from a lack of panic since Britain’s shock Brexit vote.
Today at 8:30 GMT will feature the UK CPI, followed by the Eurozone and German ZEW Economic Sentiments scheduled for 9:00 GMT.
Resistance: 0.8414, 0.8468, 0.8508
Support: 0.8338, 0.8298, 0.8260
Yesterday, the Australian dollar recovered almost all of Friday’s losses incurred by the failed Turkey coup. However, the pair is trending downward this morning so far thanks to the Reserve Bank of Australia’s Meeting Minutes. There is an indication that there could be rate cuts in the near future because of low inflation.
Later on today at 12:30 GMT will be the U.S. housing starts, which should impact the pair.
Resistance: 0.7575, 0.7635, 0.7686
Support: 0.7508, 0.7469, 0.7411
Goldman Sachs (GS)
US investment bank Goldman Sachs is scheduled to publish its quarterly report before the US markets open. According to the projected forecasts earnings per share should hit $3.04, with its total revenue reaching $8.3 billion.
Resistance: 164.50, 168.70, 172.79
Support: 160.79, 157.87, 154.53
Gold prices fell slightly yesterday as most investors decided to take their profits after its sharp rise, caused by the failed coup attempt in Turkey. Gold is additionally under pressure as the USD continues to strengthen. Today’s trading dynamics will depend on US Housing Starts and Building Permits, both of which are scheduled for 12:30 GMT.
Resistance: 1338.04, 1346.85, 1357.25
Support: 1326.95, 1314.14, 1299.42