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Thursday, July 21st
GBP/USD
Current price: 1.3245 (0.3%)
Session range: Open 1.3208; High 1.3276; Low 1.3203
Latest trend: Bearish
Expected trend: Bearish
Daily volatility: High
Support and resistance levels: S. 1.3003 R. 1.3329
Main drivers: UK Retail Sales, Philadelphia Fed Manufacturing Index, US Existing Home Sales
Overview: Broad based US dollars’ weakness coupled with upbeat data from UK’s labor market has allowed pound bulls to take control over the pair and break through the level of 1.3200. Today the pair is consolidating part of its gains hovering in the region 1.3020-40 awaiting for fresh impute from the upcoming UK retail sales data for further direction. Furthermore, EU Interest Rate Decision also will be closely watched, as it is the main risk event of this week.
EUR/USD
Current price: 1.1026 (0.1%)
Session range: Open 1.1014; High 1.1048; Low 1.1005
Latest trend: Bearish
Expected trend: Bullish
Daily volatility: High
Support and resistance levels: S. 1.0959 R. 1.1057
Main drivers: EU Interest Rate Decision, Philadelphia Fed Manufacturing Index, Speech of ECB President Draghi, US Existing Home Sales
Overview: Euro is trading on a firm note against US dollar as new wave of risk-on sentiment are pushing the pair to todays high at 1.1047. However the pair won’t perform any sharp actions as investors are staying cautious ahead of the most volatile event of this week ECB Interest Rate Decision watching for the impact of the Brexit vote.
USD/JPY
Current price: 107.01 (0.2%)
Session range: Open 106.84; High 107.49; Low 106.87
Latest trend: Bearish
Expected trend: Bearish
Daily volatility: High
Support and resistance levels: S. 105.38 R. 107.76
Main drivers: Philadelphia Fed Manufacturing Index, US Existing Home Sales
Overview: The pair refreshed its six-week high in Asia after Japanese government announced its intention to expand stimulus package, sending the pair to the level of 107.50. However, the pair has retreated from its highs and now is holding near the level of 107 as shrinking risk appetite across the market during Asia has supported the yen as safe-haven currency. Moreover, the minor pull back could be related to the price correction as yens bulls are receiving support from profit taking actions after pairs tow-week climb for over the 700 pips.
NZD/USD
Current price: 0.6991 (-0.4%)
Session range: Open 106.84; High 107.49; Low 106.87
Latest trend: Bullish
Expected trend: Bearish
Daily volatility: Moderate
Support and resistance levels: S. 0.6950 R. 0.7087
Main drivers: Philadelphia Fed Manufacturing Index, US Existing Home Sales
Overview: The pair sinks for 7th session in a row losing up to 300 points mainly driven by speculations of RBNZ with further rate cut. The pair broke through its key support level of 0.70 in early Asia completely ignoring higher oil prices. Moreover, the pair received additional bearish pressure earlier this week after NZ has released lower-than-expected CPI data.
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