What events to follow and how to trade during the week of July 2-6?
Daily News: NAFTA threats
- The US dollar index has been going further up as the market worries about the US-Canada deal. Talks between the US and Canada will resume on Wednesday. Mexican economy minister said he expects a deal between countries by Friday. But there is no accurate news, so the market has doubts whether Canada is ready to obey. Traders don’t like risks so they bet on the safe havens such as the USD.
Up to now, the index has been moving to the resistance at 95.70. No important economic data will be released today. So if the NAFTA worries ease, the index will go down. The support is at 95. Otherwise, it will be able to break above the resistance.
- Up to now, USD/CAD has tested above the resistance at 1.3180. It will be an important day for the CAD. Trade balance data (15:30 MT time) and the meeting of the BOC (17:00 MT time) will affect the direction of the currency. If the economic events are supportive, the CAD will have chances to slow down the rise of the pair. Supports are at 1.3180 and 1.31. If the events are not able to support the CAD and the NAFTA talks are cloudy, the pair will go further up. Resistances are at 1.3219 and 1.3290.
- Yesterday oil benchmarks showed a significant volatility because of the mixed news. Prices surged ahead of the anticipation of tropical storm Gordon hitting the region. As a result, dozens of U.S. oil and gas platforms in the Gulf of Mexico were shut. But the storm passed the area round, so the threats eased and oil prices plunged.
Brent rose to $79.72, however, closed at $77.88. Up to now, Brent has been moving down. The price is near $77.65. The support is at $77. The next one is at $75.25. In case of some positive news for the oil market, the price will turn around. The resistance is at $78.50.
WTI jumped to $71.39 but closed at $69.40. Up to now, the price has been trading near $69.10. The support is at $68.20. If there is positive news, the price will recover. The resistance is at $70.50.
Some comments from Saudi Arabia. The country wants Brent between $70-80 a barrel and at the same time doesn’t want to offend Washington.
That’s all for today! Follow market news with FBS!
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The Bank of England will publish a monetary policy statement and update on the interest rate on Thursday, at 14:00 MT time.
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).