The market sentiment is mixed. Let’s look at most interesting movements on the market today.
Forex today: lots of movements
- It’s a bank holiday in the US. As a result, no important data will be released. The US dollar index is falling. It has declined to $93.90 from the Friday’s high of $94.20. The next line of support is at $93.50. Tomorrow traders will take into consideration CB Consumer Confidence. If data is higher than anticipated, the greenback will have chances to rebound.
- Euro is recovering on Italian news. A new Italian government failed to be formed as a president rejected a eurosceptic finance minister. As a result, the populist prime minister, Giuseppe Conte, resigned. The Five Star Movement is considering proposing impeachment of the President.
The euro is in the environment of uncertainties. On the on hand, the Eurosceptic finance minister was rejected, on the other hand, it’s unclear what will happen to Italy. EUR/USD has tested the pivot point at 1.17, however, didn’t stay above the level and declined. The trading is still bullish, however, it’s not extensive. If EUR/USD is able to close above the pivot point, there is a chance of the further rise. However, the trendline is an additional resistance for the pair. Tomorrow traders should pay attention to M3 Money Supply’s data. If it is greater than the forecast one, the euro will be supported. However, if the US dollar manages to recover tomorrow, the euro will turn around.
- The Brexit deal becomes more unclear. A British government invested $1.1 million in a European parliament’s election in May 2019. It seems like the UK doesn’t want to leave the EU. The UK’s exit is supposed to take place in March 2019, so, why did the country invest money in May’s elections? The pound is rising, however, the rise is not strong. The pair is still below the pivot point at 1.3360. It’s a UK bank holiday today. As no important data are anticipated, there is a risk that the pound will go downside. The support is at 1.3225.
- Political and trade tensions are still actual. On the one hand, there is promising news that US/North Korea summit will take place as a US team has arrived in North Korea to make an agreement. On the other hand, Washington is pressing Beijing to enter into multiyear contracts to buy US agricultural and energy imports. The yen is strong. The USD/JPY pair broke the 50.0 Fibo level. The support lies at 108.90. If the US dollar manages to turn around, the USD/JPY pair has chances to recover. The 50.0 Fibo level will be a resistance.
- Oil is continuing to plunge. Brent is trading near $75.50 a barrel, WTI is near $66.80. The fall of oil is caused by worries of investors on a prospect of major oil producers such as Russia and Saudi Arabia boosting production. Moreover, US output also showed signs of picking up. The support for Brent lies at $74.50. 50-day MA will be an additional support for the oil benchmark.
WTI’s support is at $66.50. 100-day MA will be a further support for WTI.
- A strong fall of oil causes a great depreciation of the Canadian dollar. Even the fall of the US dollar doesn’t give a chance to loonie for recovering. USD/CAD is moving to the resistance at 1.3060. No significant data for the Canadian dollar will be released either today or tomorrow. As a result, the pair has chances to reach the resistance.
That is all for today. Follow markets news with us!
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.