Daily Market Review — 22/06/2016
Any currency paired with the USD will be on the move when Fed Chair Yellen testifies at 14:00 GMT
Yesterday the pair grew moderately, helped in part by Janet Yellen’s speech. She mentioned that the interest rates will ultimately rise gradually but at the same time certain dynamics including GDP, unemployment and inflation must be properly addressed. Falling oil prices had an additional positive impact upon the pair as the Canadian dollar is closely tied to the rise and fall of oil. Generally if oil prices go up so does the CAD. If prices decline it will also follow suit. Today’s trading dynamics will depend upon the Canadian Retail Sales report and the U.S. Existing Home Sales, scheduled for 12:30 and 14:00 GMT respectively. Lastly, Federal Reserve Chair Janet Yellen will continue her testimony pertaining to the nation’s economic outlook at recent monetary policy actions additionally scheduled for 14:00 GMT.
Resistance: 1.2825, 1.2872, 1.2941
Support: 1.2761, 1.2705, 1.2658
The pair fell slightly yesterday thanks to partial profit-taking after Monday’s impressive rally. Additionally, Brexit fears are still providing significant pressure on the pair. For the duration of today and tomorrow, the pound and any of its currency counterparts will almost definitely experience an uptick in volatility pairs with pound is expected. Today the pair will additionally be impacted by Janet Yellen’s continued testimony pertaining to the US economy at 14:00 GMT.
Resistance: 1.4783, 1.4851, 1.4936
Support: 1.4610, 1.4526, 1.4444
Boeing Co signed an agreement to sell jetliners to Iran Air, the company announced yesterday. This tentative agreement marks Boeing’s first sale to Iran since its revolution in 1979. According to the director of Iran’s Civil Aviation Organization Iran Air will purchase 100 jetliners. Despite initial concerns being raised by members of Congress, Boeing stated that it is working to get the necessary US government approvals. After the deal was announced the company’s shares initially rose but then fell slightly after investors took profit. Currently Boeing is listed at 131.52, down 0.93%.
Resistance: 132.23, 132.99, 133.78
Support: 130.48, 129.83, 129.02
Brent Oil Futures
Oil fell during the first half of yesterday’s trading day as investors took profit after recent gains. Additionally, the upcoming Brexit referendum provided further pressure. Today’s weekly U.S. crude oil inventory report at 14:30 GMT will influence the market.
Resistance: 51.28, 51.81, 52.50
Support: 50.38, 49.78, 49.27