Forex today: a lot of movements after the G7 summit

Forex today: a lot of movements after the G7 summit

  • In the environment of trade wars, tariffs and geopolitical tensions traders looked for the G7 summit to get clues on relationships between country-members and world economy, so they got. It seemed like countries were nice to each other until Mr. Trump left the summit. US President managed to stand out again. Have a look at his recent tweets.

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Firstly, Mr. Trump rejected the G7 statement. 

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Secondly, the US is going to impose new tariffs on its allies. However, we are not sure that those countries remain allies for the US.

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Let’s see where all this will lead the world.

 

Tomorrow Donald Trump will meet with the North Korean President Kim Jong-un. It seems like US President is inspired.

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  • US dollar index managed to rebound from the psychological level of $93.50. Up to now, the index is trading above $93.60. However, no important economic data will be released today. The resistance is at $94. The support is at $93.40.
  • Despite Trump’s threats on the European exports, the euro didn’t react a lot. Maybe comments of the Italian Economy Minister managed to support the single currency. According to them, Italy will stay in the European Union. As a result, EUR/USD tested the resistance at 1.18. However, the pair couldn’t stick there. No important European economic data will be released today. It creates risks for the euro. The support lies at 1.1750 (the pivot point), the resistance is still at 1.18.

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  • The pound couldn’t gain a foothold above the pivot point (1.34) because of weak economic data. Manufacturing production figure fell to -1.4 versus the forecast of 0.3%. Goods trade balance appeared to be weaker than anticipated (-14.0B vs -11.5B). As a result, the GBP/USD pair is moving down. On H4, 50-hour MA is a strong support for the pair. If GBP/USD is able to break the support, the further fall is anticipated. Moreover, no more important economic data will be released today. The support is at 1.33.

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  • It seems like trade tensions increased, however, the Japanese yen didn’t rise. Maybe traders are already used to announcements of Mr. Trump, so they don’t react anymore. USD/JPY broke above the 50-hour MA, the 200-hour MA and the 100-hour MA. Moreover, the pair broke the resistance at 109.70 (50.0 Fibo level). If the US dollar index strengthens today, the pair will go up. However, there is the strong resistance at 110.20 (200-day MA).

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  • Although Mr. Trump gave negative comments on the future relationship with Canada, the Canadian dollar didn’t react. USD/CAD pair is going down. No important data will be released either for the US or the Canadian dollar. The further movement of the pair will depend on the strength of the US dollar. If the US dollar manages to strengthen enough, USD/CAD will go up. The resistance is at 1.3040. Otherwise, the pair will move to the support at 1.2950 (the pivot point).

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  • Bitcoin strongly plunged. The cryptocurrency was trading within $7,000-$7,600 for more than two weeks, however, on Sunday the cryptocurrency market fell. Bitcoin broke the support at $7,000 and tested the next one at $6,500. On Monday, the cryptocurrency managed to strengthen and rebounded from the support. However, the trading is not extensive. The next support is at $5,500.

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That is all for today. Follow markets news with us!

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