Daily Market Review – 26/07/2016
US economic data will move the markets today
With the economic calendar almost empty yesterday, the upcoming Bank of Japan interest meeting, scheduled for July 28-29 impacted the pair. Meanwhile, earlier this morning it was announced that only 6 trillion yen will be allotted for the stimulus package as opposed to 10 trillion. Ultimately, that caused investors to purchase the Japanese currency. However, it seems that US economic statistics will predominately impact the pair in the future.
At 13:45 GMT will be the US Flash Services PMI, followed by the CB Consumer Confidence and New Home Sales at 14:00 GMT.
Resistance: 104.61, 105.37, 106.16
Support: 103.93, 103.28, 102.44
The pair trended negatively yesterday as the USD continued strengthening. However, this morning so far the Australian currency recovered almost all of its losses. Meanwhile, investors are eagerly awaiting Australia’s Consumer Price Index scheduled for tomorrow 1:30 GMT. Today’s dynamics will depend entirely on the US data, which will be presented later on during the day.
Resistance: 0.7561, 0.7590, 0.7617
Support: 0.7508, 0.7475, 0.7441
McDonald’s will present its quarterly report today before the markets open. The consensus EPS is $1.38, and the total revenue should be $6.24 billion. If the report matches or exceeds expectations the stock may rise to $130.
Resistance: 128.60, 129.70, 130.68
Support: 126.90, 125.56, 124.32
Brent Oil Futures
Oil continued to fall yesterday as stocks in the terminal Cushing rose by 1 million barrels, according to Genscape. It should be noted that most analysts believe that oil demand during Q3 2016 will be 66% lower than what it was a year prior.
Today the US Institute of Petroleum will present its weekly inventory report.
Resistance: 45.60, 46.15, 46.75
Support: 44.95, 44.35, 43.51