Daily Market Review — 28/07/2015
Investors Are Focused On the Upcoming News from the UK and United States
The pair started out positively yesterday. Market participants are waiting for the start of negotiations between Greece and its international creditors, which for technical reasons had been rescheduled from Friday for today. Also, the single currency got supported by the expectation of the publication of data from the IFO institute, which showed that the business climate and the current conditions in the euro area improved. However, the pair holding back by purchases of the yen as a safe-haven amid yesterday’s fall of the Chinese stock market. There are no scheduled economic indicators releases that may have an impact on the dynamics of the pair.
Resistance: 137.10, 137.27, 137.78
Support: 136.44, 136.16, 135.47
The pair trading was bearish yesterday. The reason for this is the publication of negative data on retail sales on Thursday. Some influence has had yesterday’s release of the CBI industrial order books balance in the UK, which came out worse than analysts’ forecasts. At the same time, it is worth noting that yesterday’s data on Durable goods orders in the US was better than analysts’ forecasts. However, in the second half of the trading day, the pair experienced a strong growth. Today, it is worth paying attention to the important news from the UK, which scheduled for today at 08:30 (GMT). UK Office for National Statistics will release data on GDP for the second quarter. You should also pay attention to the Services PMI and Consumer confidence in the US, scheduled for today at 13:45 (GMT) and 14:00 (GMT), respectively.
Resistance: 1.5594, 1.5646, 1.5670
Support: 1.5500, 1.5450, 1.5410
US stocks showed a negative trend in yesterday’s trading session, which was caused by negative external background, e.g. crash of Chinese stock market and the fall in commodity prices caused by concerns about slowing down of the second-largest economy in the world. Strong data on the US economy, published yesterday, could not support the stock indices, as it increases the chances of increase in interest rates in the US, which is extremely unwanted by the stock market.
Resistance: 17459.91, 17546.97, 17700.42
Support: 17379.30, 17319.28, 17249.17
After some growth at the beginning of the European session, caused by another fall of the Chinese stock market, prices returned to the downward trend in the second half of yesterday’s trading day. Recall that during the global financial and economic turmoil, a large number of investors view gold as a safe-haven asset. The negative dynamics of prices for precious metal pressured by expectations of an upcoming increase of the interest rates in the US.
Resistance: 1104.96, 1109.80, 1118.74
Support: 1091.61, 1087.08, 1077.23