Daily Market Review – 28/07/2016
Japanese CPI will be today’s main event
Yesterday, the pair grew strongly after Japanese Prime Minister Shinzo Abe announced that there will be over a 28 trillion yen ($265 billion) stimulus package. However, it was yesterday’s FOMC Meeting that ultimately stole the show. Unsurprisingly, the Fed decided to leave the interest rates unchanged. The accompanying statement proved to be a mixed bag. On the one hand it was noted that the US economy is indeed improving but on the other hand it was noted that the chances of a rate hike occurring this year still remain small. The pair fell as a result
The pair’s dynamics will be impacted with the weekly US labor market data at 12:30 GMT. Then at 23:50 will be both the Japanese CPI and Retail Sales report. Finally, tomorrow at 3:00 GMT, the Bank of Japan will present its monetary policy statement.
Resistance: 105.37, 106.16, 106.72
Support: 103.93, 103.28, 102.44
The euro grew strongly against US dollar during yesterday’s session after the Fed announced that it will leave the national interest rates unchanged (0.25-0.50 %) at the present time. Additionally, the FOMC Statement caused the pair to further rise as there were no hints about when the next potential rate hike will be.
Today’s trading dynamics will depend on the latest German labor market data at 7:55 GMT and its monthly Preliminary CPI at 12:00 GMT. Additionally at 12:30 GMT will be the weekly US Unemployment Claims report.
Resistance: 1.1083, 1.1118, 1.1148
Support: 1.1040, 1.1001, 1.0967
Google will publish its quarterly report today after the US markets close. Analysts anticipate it will have an EPS of $8.04 along with $20.63 billion in total revenue. If the report matches or surpasses these expectations its share price may rise to $750. Volatility is expected throughout the day.
Resistance: 746.30, 751.42, 755.30
Support: 736.47, 729.65, 724.53
Brent Oil Futures
Oil futures fell sharply on Wednesday to fresh 3-month lows, as U.S. crude stockpiles unexpectedly moved higher last week defying expectations for a slight draw on the week. Meanwhile, the Fed’s decision to leave the interest rate as is additionally impacted the markets.
Resistance: 44.52, 45.30, 45.90
Support: 43.40, 42.27, 41.21