Daily Market Review July 07



Asian crude demand has slowed as measures to stabilize crude prices failed to bring comfort to prices. Crude prices were seen rising due to the rally before and after the rally caused by the ‘Brexit’, however things went a little haywire later on. Growth started to slip again as exports continue to disappoint and this is the bottom line of the ripples effects from global economic distress. On the contrary, crude oil inventories fell which tried to give crude prices a little boost. But, this might not last for long.

Brent crude oil futures upped by only 28 cents to settle at $49.08 a barrel, while WTI crude was up by 27 cents to trade at $47.70 a barrel. Bank of Japan’s governor Kuroda announced that the central bank is ready to expand further monetary stimulus so as to achieve its 2 percent inflation target. More central banks such as the European Central Bank, the Bank of England want to adopt the same measures to as to soothe their respective economies.

Assets to trade today will definitely be the US dollar and Gold. Two interesting reports are ready to be released today while they could also bring strong impacts on major assets. With the U.S. ADP report releasing today ahead of the NFP tomorrow, a rise in the data could also mean that the NFP data could turn out bullish. However, another data release which could be of interest to all, is the crude oil inventories date at 15:00 GMT.

Technical Analysis:
The market shows a nasty beginning for the EURUSD pair for this week and it has been further pulled down during the past few days. As U.S. economic indicators soared yesterday, the EURUSD came to lows. Further downside is expected as the pair dwells around the 1.108 level while the pair is expected to bounce at least a little higher than the 1.112 level. The pair commenced the session around the 1.106 level and fell to consolidate around the same vicinity. As the pair upped to the 1.110 level, it was seen closing the session at the 1.109 level. The Relative Strength index shows that the pair is currently stable around the 48.5 level. Keep an eye on this pair to trade safely.
U.S. economic indicators look likely to support the USD this week ahead of the nonfarm payrolls data release. Yesterday, the pair USDJPY commenced the session at the 101.1 level and initially fell to the 100.7 level. As the pair tried to gather some momentum to climb a little higher to the 101.09 level, the pair was pulled further down to the 100.2 level. However, eventually the pair was pushed slightly higher to the 101.4 level and closed the session around the 101.1 level. The Ichimoku cloud moves above the candles signaling a bearish session for the moment, but the lines of the indicator are about to close between the 100.8 and 101.4 level which could mean a diversion for the pair after release of more U.S. data tomorrow.

The Parabolic Sar indicator shows an upward trend awaited for the pair GBPUSD while the USD tries to hold down the ascent of the GBP. This resulted into a consolidation mode for the GBPUSD pair. Yesterday the pair GBPUSD commenced the session around the 1.295 level which is still way down from the support line of 1.320 level. The session was brought to a halt around the 1.291 level, while today the pair is seen trading around the 1.295 level. Price action shall be watched closely today as the U.S. gets ready to divulge more economic data ahead of the NFP tomorrow. Keep an eye on this pair today.

 

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