Market Roundup
- U.S. crude inventories soar above 5-year seasonal average (EIA).
- Goldman cuts copper forecasts on faltering Chinese demand growth.
- ECB increases emergency funding by 900 million euro's.
- EU's Moscovici confident measures will be adopted by Greek parliament, Greek bailout talks to last until second half August.
- Brazil to cut fiscal surplus goal as downturn takes a toll (to0.15% from 1.1%).
- US Monthly Home Price YY* May 5.70%, 5.30%-previous.
- US Existing Home Sales Jun 5.49m, f/c 5.40m, 5.32m-previous.
- BR IPCA-15 Mid-Month CPI YY* Jul 9.25%, f/c 9.23%, 8.80%-previous, no letup CB target 4.5% +/- 2%.
Looking Ahead - Economic Data (GMT)
- 23:50 Japan Exports YY* Jun f/c 10%, 2.4%-previous
- 23:50 Japan Imports YY* Jun f/c -4%, -8.7%-previous
- 23:50 Japan Trade Balance Total Yen* Jun f/c 5.4b, -216.0b-previous
Looking Ahead - Events, Other Releases (GMT)
21:00 NZ RBNZ announces OCR N/A f/c 3%, 3.25%-previous
Currency Summaries
EUR/USD
EUR/USD is supported around 1.0819 levels and currently trading at 1.0911 levels. It has made session high at 1.0918 and lows at 1.0867 levels. The pair started to fall after the release of US Existing Home Sales which printed better than expected figures at 5.49 million against the forecast of 5.40 million. The pair fell from 1.0930 levels to hit daily lows at 1.0867. After the market stabilized from the impact of news, the pair consolidated and is try to approach daily resistance level at 1.0930, Meanwhile Greece's lawmakers will vote on late Wednesday on two more conditions set by the creditors for getting 86 billion euro loan. Though there are hiccups, the legislation is set to vote and pass the bill. Opposition parties said earlier they would vote to back the bill. To the upside, immediate resistance can be seen at 1.0970. To the downside, major support level is located at 1.0810. Overall trend of this pair is bearish in the and in the long term.
GBP/USD
GBP/USD is supported around 1.5558 levels and currently trading at 1.5607 levels. It has made session high at 1.5622 and low at 1.5558 levels. The pair fell back after Bank of England policymakers voted unanimously to keep interest rates on hold, but there were signs that more of them were inching closer for pushing towards first rate hike. Minutes of the Monetary Policy Committee's meeting, showed its members voted 9-0 to leave rates at their record low of 0.5 percent. The minutes said the "very material factor" of Greece's debt stand-off had influenced policymakers' vote to keep rates on hold. After the meeting in the mid New York session the pair fell back from 1.5641 to hit session lows at 1. the upside, immediate resistance can be seen at 1.5650. To the downside, major support level is located at 1.5525.
USD/CHF
USD/CHF is supported around 0.9555 levels and currently trading at 0.9602 levels. It has made session high at 0.9629 and low at 0.9594 levels. The pair resumed its bullish momentum today supported by positive better than expected US housing data and stronger dollar index across the board against the basket of five currencies, the pair gained almost 30pips and hit high at 0.9629 and retreated back to trade around 0.9603 in the late Newyork session. The pair is all set to reach 0.9650 level and 0.9700 levels in the coming days as long as the support level at 0.9530 holds the pair breaking below the support level at 0.9530 levels is highly unlikely as the dollar is too strong against the Swiss franc. To the upside, immediate resistance can be seen at 0.9650. To the downside, major support level is located at 0.9560.
USD/JPY
USD/JPY is supported around 123.50 levels and currently trading at 124.00 levels. It has made session high at 124.17 and low at 123.95 levels. On Tuesday BoJ Governor Kuroda suggested no more quantitative easing would be needed given his view on inflation rising due to a tight labor market. In the New york session, the pair surged from 123.65 levels to reach 124.16 levels, supported by better than expected US housing data which came at 5.49 million units against the forecast of 5.40 million units, analysts had predicted Existing Home Sales to be around 5.41 million units. The data gave fresh impetus to dollar which rose against the basket of currencies. The yen slipped 0.2 percent versus the dollar at 124.09. The dollar index that gauges the greenback against a basket of currencies was up 0.5 percent at 97.76. . To the upside, immediate resistance can be seen at 124.15. To the downside, major support level is located at 123.50.
