Join us as we follow the market’s most significant events and provide technical analysis of the most important financial assets, so you are more aware of the factors driving daily price changes and economic data.
Today’s Economic Calendar
– At exactly 8:00 am, BOE Gov Bailey Speaks
– AT 30 after 12 pm,
annually and monthly US CPI (June), Core CPI m/m, and BOC Rate Statement
–At 30 after 2pm , US Crude Oil Inventories will release
-At exactly 3 pm , BOC Press Conference
Top News in Global Markets:
– The dollar index records its weakest level in two months amid increasing expectations that US inflation will continue to decline and that the Federal Reserve will soon stop raising interest rates.
Philip Lowe of the Reserve Bank of Australia stated that the bank will reduce the number of interest-setting meetings to eight times instead of eleven times and make the meetings longer, starting from 2024.
The Hang Seng Index tracks gains in US-listed Chinese stocks on Tuesday after credit growth accelerated last month on the mainland.
The New Zealand dollar rose 0.6%, approaching a seven-week high, after paring gains following the Reserve Bank of New Zealand’s decision to keep interest rates steady at 5.5% for the first time in nearly two years.
The Shanghai Composite fell 0.1%, as investors assessed prospects that Beijing would offer more policy support measures.
WTI futures rose above $75 a barrel on Wednesday, hovering at their highest in more than two months amid signs that Russian crude production may finally start to decline.
Nikkei 225 fell 1.1%, while the broader Topix index lost 0.7% to 2220 on Tuesday, hitting a one-month low.
The FTSE 100 rose on Tuesday, supported by commodity-related stocks, despite positive domestic wage data, which raised concerns about a possible interest rate hike by the Bank of England.
Today’s upcoming events:-
Bailey speaking from the Bank of England
US inflation data
Bank of Canada monetary policy decision and follow-up monetary policy decision press conference
US oil stocks
10-year US bond auction
Technical Analysis
Dollar Index – 1 Hour Timeframe
The selling pressure on the US dollar continued since yesterday, as investors were anticipating the US inflation data during the day, as the support levels around 101.17 points were broken.
Technically, the index is still trading below the 20- and 50-day moving averages that intersect negatively at the medium intervals, so the index is likely to target the support levels around 100.95 points downwards, then in the event of a break, we target 100.75 points.
Gold – 1 Hours Timeframe
Gold prices rose today, to hold above 1925 dollars, within the selling of the US dollar, with increasing expectations of the approaching end of the Federal Reserve monetary policy tightening period.
Technically, gold is trading above the 100-day moving average, after rebounding from $1912.66 yesterday. We expect gold to continue its rise and test the $1935 resistance again.
US Dow Jones – 1Hours Timeframe
The Dow Jones industrial index continued to rise, as we mentioned yesterday, breaching the resistance levels around 34,150 points, and settling in trading above the 20-day moving average.
Technically, we expect more Bullishness on the index to complete the prevailing rise over the medium-term intervals, targeting the resistance levels around 34,360 points.
US Crude Oil – 1 Hour Timeframe
US oil prices rose to levels of $75.00, in continuation of the bullish trend for the second week in a row, awaiting today’s oil inventories data from the United States.
Technically, oil is trading above the 100-hour moving average, after breaching $73.70. We expect oil to continue rising to 75.90, provided it continues above the current support.
Bitcoin – 1H Timeframe
The price of the digital currency Bitcoin declined yesterday, reaching $30,380 level, before rising again towards $30,700 level this morning.
Technically, the digital currency is trading above the 38% Fibonacci area, near the 30800 resistance, from which we expect prices to bounce back and return towards $30,500 levels.
EUR/USD – 1 Hour Timeframe
The (Euro / Dollar) pair continued to rush since yesterday, focusing on the support levels around 1.0999 that we mentioned yesterday, supported by the increasing pressure on the US dollar.
Technically, we expect more bullishness on the pair during today’s trading, targeting the resistance levels around 1.1085 over the short term.
GBP/USD – 4 Hours Timeframe
The British pound against the dollar rose to the highest levels of 1.2950, its highest level since April, awaiting US inflation data today.
Technically, the price of the pair rose, in line with our expectations yesterday, to reach near 1.2970 levels at the rising trend line, which is today’s resistance, and in case of breaching the resistance, the pair will continue to rise towards 1.3000.
GBP/JPY – 4 Hours Timeframe
The (GBP / JPY ) pair continued to decline, breaking the support levels around 180.95 yen, after bouncing down from the resistance levels of around 182.00 over the short term.
Technically, we expect a further decline in the pair during today’s trading, targeting support levels around 179.85 yen.
