Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
Trading forecast for June 22
2019-11-11 • Updated
- Thursday mixed economic data didn’t let the US dollar index to break the psychological level at $95. Philly Fed manufacturing index was weaker than anticipated, however, unemployment claims data appeared to be more positive than the forecast. Mixed data were not an encouraging factor for the USD, as a result, it’s falling trading near $94.60. The support lies at $94.
As the USD is weak on Thursday, other currencies managed to recover. EUR/USD pair rebounded from the support at 1.1550. As a result, the pair is moving to the resistance at 1.1670. On Friday, a lot of economic data will be released.
- If the actual data are greater than the forecast ones, the pair will be able to reach the resistance. Otherwise, it will come back to the support at 1.1550
- The pound got a boost from the Bank of England. Of course, the interest rate wasn’t changed, however, the number of members who voted to keep the interest rate unchanged declined. As a result, 3 members were for the rate hike, 6 voted to hold the interest rate. It means that the central bank is closer to a rate hike. As a result of the optimistic central bank’s meeting, the pound broke the resistance at 1.3180 and is moving up. On H4, you can see that 50-hour MA at 1.3280 is the next level to break. If the pair is able to do that, the next resistance is at 1.3310. On Friday, no important Britain economic data will be released. As a result, there are risks of the pullback to 1.3180.
- Friday will be an important day for the Canadian dollar. Firstly, a lot of economic data will be released. CPI and retail sales forecasts are encouraging. As a result, if the actual data are greater than the forecast ones, the Canadian dollar will appreciate.
Moreover, OPEC and its allies will meet to make an agreement on the future supply. If they agree to increase the production, oil will go down and as a result, the Canadian dollar will depreciate. Up to now, the USD/CAD pair is coming back to the support at 1.3290. Friday movement will depend on the economic data and OPEC meeting. If news for the CAD is encouraging, the pair will break the support and will move down. Otherwise, it will stay within 1.3290-1.3380.
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
As you must already know, the direction of Gold is mainly dependent on the Price action of DXY (US Dollar index). So first, we take a look at the US Dollar index.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?