What drives the market on July 8?
The market takes breath after the long rally. What opportunities do traders have today?
Daily News: a lot of news
- The USD can’t find support to return at least to 95.50. Yesterday the doji star was formed as investors don’t know what to expect from the economic data. Up to now, the index has been moving to the 50-day MA at 95.10. Today traders will look at the PPI data at 15:30 MT time. The forecast is encouraging, so if the actual data is greater than the forecast, the index will have chances to recover. The resistance is at 95.50. If the traders don’t react to positive economic data. There are risks of the fall. The first support is at 95. The next one is at 94.50.
- Worrying news from the UK. UK Conservative lawmakers had met to discuss on the ouster of Theresa May from her position. It seems like the Prime Minister won’t be able to find a support for her Chequers proposals.
There are talks that the EU Commission president Mr. Juncker is to say that the UK shouldn’t hope that the EU will soften its demand. However, he will reaffirm its willingness for a close partnership after the Brexit deal is solved.
Mixed news has affected the pound a lot. Yesterday the GBP/USD pair formed a doji candlestick that signals doubts of investors. Up to now, the pair has been trying to rebound from the support at 1.30 (50-day MA) and break above the resistance at 1.3033. No important economic data will be released today. As a result, only positive news on the Brexit deal will be able to support the British currency. As a result, risks of the fall are high. The first support is at 1.30. The next one is at 1.29.
- Positive news on the NAFTA deal pulled the USD/CAD down. According to sources that are familiar with Canada’s strategy, Canada is ready to offer a limited access to its dairy market to reach the deal with the US. It’s a progress in the negotiations, however, the deal isn’t reached yet. Moreover, there is a threat that Canadian dairy producers won’t be happy with such concessions.
Yesterday USD/CAD plunged below the support at 1.31. Up to now, the pair has been moving down. And the further weakness of the USD will pull it to the support at 1.3015. If the USD recovers, the pair will be able to turn around. The resistance is at 1.31.
- The oil market has significantly risen because of the threats of the Hurricane Florence that will hurt supply from the East Coast. Moreover, the American Petroleum Institute reported the biggest drop of US crude oil inventories since July.
Brent surged to $79.50 from $77.38. Up to now, the oil benchmark has been moving down because $79.50 is the strong resistance. And the oil prices need stronger support to break above it. The support is at $78.35.
WTI surged yesterday as well. The oil benchmark reached the highs near $70. Up to now, WTI prices have been moving down. The support is far, at $68.25. In case of positive news, the benchmark will be able to return to the resistance at $70.50.
That’s all for today! Follow market news with FBS!
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