21 July, 2015
Yesterday, the GBP fell to 1.5536 against the USD amid the strengthening of the American currency which hit a three-month high.
Market participants say that the Fed may soon start raising interest rates, while other central banks keep loose monetary policy.
Last Friday, US Bureau of Labor Statistics released Consumer Price Index which grew by 0.1% in annual terms. It was the first rise since December.
During his press conference, Fed’s Stanley Fischer said that Consumer Price Inflation should reach the target level of 2%. It is the only reason why US monetary authorities keep interest rates low.
The FRB of Cleveland stated last Friday that inflation may approach the target level of 2%.
The Bank of England minutes, due this Wednesday, are worth noting as they may shed light on the further UK monetary policy.
Support and resistance
Resistance levels are 1.5593 (middle MA of Bollinger Bands), 1.5627 (yesterday high) 1.5678 (15 July high), 1.5800 (psychologically important level).
Support levels are 1.5536 (yesterday low), 1.5500 (psychologically important level), 1.5450 (July 14 low), 1.5400 (psychologically important level).
Open short positions after the breakdown of 1.5530 with the first target at 1.5500, the second — at 1.5450 and stop-loss at 1.5550.
Open long positions from 1.5600 with targets at 1.5627 and 1.5675 and stop-loss at 1.5580.
US stock indices went up on Wednesday after the release of the minutes of the US Fed meeting in January, which was devoted to the US monetary policy. Dow Jones Industrial Average rose by 1.6%, Nasdaq Composite - by 2.2%.
Past week was marked by a two-day speech of Janet Yellen, the head of the US Fed. Mrs. Yellen did not give a straightforward answer regarding the interest rate increase at the US Fed meeting in March...
On Thursday, the price of gold strengthened by 4% and reached its year highs. The price has been growing amid an increase in demand for safe-haven assets, such as gold and the Yen...
Yesterday, US Ministry of Energy announced about unexpected decline of oil and oil products reserves by 754 million barrels over the last week. Spot-price of crude oil Brent has grown over 31.80 USD per barrel...
Over the past 2 weeks the Yen has significantly strengthened its positions against the USD due to the increasing demand for the safe-haven currency. Mixed macro-economic data on the US economy has decreased a chance that the US Fed will tighten monetary policy...
The currency pair is traded at the strong level of 1.0960 –1.1060. In case of maintenance and testing of the level and respective confirmation (for example, a pattern Price Action), we recommend to open long positions. Stop order can be placed below the signal line...
Despite that fact that the data on Non-FarmPayRolls was below the forecast (151 000 against the forecast of 190 000 and 262 000 new jobs in December), the USD has grown against the major currencies. The rise was caused by the other data on the US labor market in January...
While market participants are waiting for the release of NFPR (Non-Farm PayRolls), oil prices are gradually declining since the opening of the trading day and at the beginning of the European session...
API (American Petroleum Institute) report, released this Tuesday, showed that last week US oil stocks rose by 3.8 million barrels. Obviously, it was a bad news for oil prices, as heavy stocks of oil in the USA creates situation when supply outruns demand in the world market...