Daily Market Review – 27/07/2016
Fed’s interest rate decision will be today’s main event
The pair finished with mixed results yesterday. During the first half of the day the British pound fell a little against the US dollar. However, during the second half of the day situation changed with Martin Weale, a member of the BOE’s rate-setting committee, dropped his opposition to an easing and now favored immediate stimulus. This of course could include an interest rate cut at the Bank of England’s meeting on August 4. Additionally, the USD was helped by solid US New Home Sales and Consumer Confidence data.
Today traders should pay attention to UK GDP data at 8:30 GMT. However, today’s main event is the FOMC Statement at 18:00 GMT.
Resistance: 1.3176, 1.3271, 1.3337
Support: 1.3062, 1.2970, 1.2877
The pair fell significantly during yesterday’s session as traders believed the Reserve Bank of Australia won’t cut the interest rates. So far this morning Australia CPI data came out with mixed results, which ended up providing some support for the Australian currency. However, at the same time a relatively low level of inflation may force the central bank to cut interest rates. The pair’s movement will depend on investor sentiment.
Resistance: 1.4726, 1.4784, 1.4829
Support: 1.4646, 1.4578, 1.4521
Boeing Company (BA)
Boeing will publish its quarterly report today before the markets open. Leading analysts believe that its earnings per share should reach $0.92, while total revenue is expected to hit $23.25 billion. It is worth noting that over the last four quarters the company’s total revenue exceeded all forecasts. If the report matches or surpasses expectations its share price may rise to $136.00.
Resistance: 135.60, 137.17, 138.82
Support: 133.87, 132.87, 131.57
Gold demonstrated little change yesterday as investors are awaiting the results of the Fed’s meeting. The FOMC will announce its interest rate decision at 18:00 GMT and give the accompanying statement. According to almost all analysts the rates won’t change, so all eyes will be on FOMC statement.
Resistance: 1324.00, 1330.13, 1336.58
Support: 1315.45, 1304.88, 1293.66