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Today’s Economic Calendar
We follow today in GMT:
– 8:30 am Eurozone Services PMI (July).
– At 9 am UK, Services PMI (July), then PPI (YoY) (June)
– 9 am Eurozone Producer Price Index (MoM) (Jun).
– At 11 am in Britain, the interest rate decision issued by the Bank of England (August) and the minutes of the Monetary Policy Committee meeting.
At 11:30 a.m. US time, the Challenger Job Cuts Index (YoY).
– At 12:30 pm from the United States, unemployment claims rates.
– At 1:45 pm from the United States of America, the services PMI (July) and then at 2:00 pm the non-manufacturing PMI issued by the Institute for Supply Management (ISM) (July).
Top News in Global Markets:
Highlights of yesterday’s events:
– The Swiss manufacturing PMI was lower than expected for July.
– US oil inventories came in lower than expected, which means increased demand for the past week.
And in the morning:
– Australia’s trade balance was higher than expected for the month of June, which means that exports were higher than imports.
The Purchasing Managers’ Index for the services sector in China increased for the month of July.
Expected during the day:
German Trade Balance for June.
Swiss Consumer Price Index for July on a monthly basis.
– The final reading of the PMI for the services sector in Germany, for the month of July.
– Then the same indicator is issued in the Eurozone and the United Kingdom for the month of July.
– Producer price index in Europe on a monthly basis for the month of June.
OPEC meeting.
British interest rate decision.
– US jobless claims for the previous week.
– Purchasing Managers’ Index for the US services sector from the Institute for Supply Management for July.
US natural gas inventories from the Energy Information Administration
Technical Analysis
Dollar Index – 4 Hours Timeframe
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The US dollar index continued the rally on Wednesday, breaching today the resistance levels around 102.35 points that we mentioned yesterday, supported by the positive non-farm employment data.
Technically, the moving averages are still positively intersecting and the price is trading above it, so the index is likely to bounce down around the resistance levels around 102.95 points.
Gold – 4 Hours Timeframe
The yellow metal fell for the third day in a row, to the $1933 level, after rebounding from 1954.78, to reach its lowest level in 3 weeks.
Technically, gold is trading below the moving average of 200, with a break of the 50% Fibonacci retracement area, and we expect the continuation of the bearish trend to 1929, then 1923 USD.
US Dow Jones – 4 Hours Timeframe
The industrial index settled in trading below the resistance levels around 35555, as we mentioned yesterday, supported by the 20- and 50-day moving averages.
Technically, the index is likely to continue its corrective decline during today’s trading, targeting support levels around 34,850 points.
US Crude Oil – 1 H Timeframe
Oil fell to the level of $79.08 after rebounding from its high of $82.45 from last April, after the US oil inventories recorded the largest drop ever.
Technically, oil is trading around the 38% Fibonacci retracement area, and we expect if the current support of 79.00 is broken, the decline will continue towards 77.25 USD.
EUR/USD – 4 Hours Timeframe
The (Euro / Dollar) pair continued its decline since yesterday, against the background of the strength of the US dollar due to the non-farm payroll data, trading today around the support levels of 1.0940.
Technically, we expect the decline to continue during today’s trading, targeting the next support level around 1.0860, around which we expect the decline to stop and the pair to start bouncing back up again.
GBP/JPY – 4 Hours Timeframe
The ( GBP / JPY) pair is still fluctuating, adopting a bearish trend over the medium-term intervals for the fourth day in a row, to settle below the 20-day moving average.
According to the technical outlook, we expect the pair to continue to decline during today’s trading, targeting 181.45, and then the support levels around 180.55..
