What drives the market on July 8?
The market takes breath after the long rally. What opportunities do traders have today?
Daily News: a great plunge of the NZD
- The US dollar index keeps trading within $95-95.50. However, renewed trade wars disputes are pulling the index up. China announced its confidence to impose additional tariffs of 25% on $16 billion worth of US goods. Moreover, the market is waiting for the PPI data (15:30 MT time). The forecast is slightly weaker, but if the actual data is greater than the forecast, the index will go further up. Up to now, it has been trading near $95.25. Positive economic data will pull it to $95.40. Otherwise, the index will keep trading near $95.30.
- Despite the Westpac forecast of the neutral effect of the RBNZ statement on the NZD, the New Zealand dollar significantly fell to lows of March 2016. The RBNZ said it would keep the rate on hold through 2019 and longer in 2020 than was announced in the May statement.
Up to now, NZD/USD has been trading near 0.6650. If the USD is stronger today, the pair will go further down. The next support is at 0.6580. Otherwise, the pair keeps trading near 0.6650.
- The oil market is falling. Crude oil inventories figures showed a smaller decline than was anticipated.
Brent fell to 3-week lows. Up to now, the trading hasn’t been active. The price is standing near $72.25. The resistance is at $73.50. The support is at $71.55.
WTI fell to lows of the end of June. Up to now, the oil benchmark has been trying to recover. However, trading isn’t extensive as well. The price is moving near $66.85. The resistance is quite far, the price needs great support that is unlikely to appear today. The support is at $66.35.
- The oil significantly fell yesterday. As a result, the Canadian dollar is weaker today. Moreover, the situation between Canada and Saudi Arabia is still uncertain. Yesterday the CAD rose a lot against the USD. USD/CAD fell to the support at 1.3017. Up to now, the pair has been recovering. However, the trading isn’t extensive. The market is waiting for the US data. If the USD is stronger, the pair will go up. The resistance is at 1.3067. Otherwise, there are risks of the fall below the pivot point at 1.3017.
- Disputes between the US and Turkey are escalating. A Turkish delegation in Washington refused to commit to releasing the American pastor. As a result, the USD/TRY pair is moving to highs of the beginning of August. The resistance is at 5.42.
That’s all for today! Follow market news with FBS!
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