Market updates on July 16

Speech by the BOE Governor Mark Carney – 15:00 MT time

If the governor’s comments regarding monetary policy are hawkish, the British pound will move up.

Speech by the FOMC member Bowman – 15:15 MT time

If the policymaker softens his comments concerning the rate cut, the USD will go up.

US retail sales and core retail sales – 15:30 MT time

The key release for the USD today.  Both headline and core indicators are expected to advance by 0.1%. Higher figures will bring positive momentum for the USD.

Speech by the Fed Chair Powell – 20:00 MT time

Speech by the FOMC member Evans – 22:30 MT time

Pay attention to the hints on the rate cut by the Fed speakers.

• The New Zealand dollar was supported today by the release of its CPI during the Asian trading session. The indicator came out in line with the forecasts as it advanced by 0.6%. On H4, NZD/USD retested the resistance at 0.6734 but failed to break it. If the USD is supported today, the pair will move lower to the support at 0.6716. The next key support levels lie at 0.67 and 0.6670. From the upside, pay attention to the resistance at 0.6734. If this level is broken, the further rise will be limited by the 0.6748 level. RSI is about to leave the overbought zone and Stochastic indicator formed a crossover. These facts may provide us a short-term selling opportunity.

• The British pound weakened significantly ahead of the employment data and the speech by the BOE governor. It has tested the ground below the 1.2479 level on H4. The next support in the focus of bears will lie at 1.2439. If the cable reverses, the pair will retest the 1.2520 level. If this resistance is broken, bulls will target the 1.2538 level. Stochastic indicator formed a crossover within the oversold zone.

• EUR/USD has been consolidating between the 1.1284 and the 1.1236 levels since July 11. Today it has already tested the levels below the 50-period SMA at 1.1249. If the USD is supported today, bears will break the 1.1236 level and target the next support at 1.1220. Key resistance levels for the euro are 1.1263, 1.1274 and 1.1284.

Ekaterina Gorbatenko

View all articles author

Similar

18.06.2021 09:55 US dollar rallies up after Fed

The US dollar has surged to levels unseen since April after the Fed's decision back on Wednesday. Gold has reversed up from the local dips. Still, this week was the worst for gold in more than a year.

17.06.2021 13:00 An opportunity to trade GBP on the news

Great Britain will release retail sales for May on June 18, at 09:00 MT time. One cannot underestimate the importance of this indicator.

17.06.2021 11:27 USD surged after Fed’s hawkish surprise

The Fed made a hawkish surprise! The bank would start a discussion about scaling back bond purchases. Besides, it is likely to make two interest-rate increases by the end of 2023 (sooner than expected)!

Latest news

21.06.2021 10:20 PMI reports on Wednesday will influence EUR, GBP, and USD

Wednesday will please traders as many economic indicators will be out! The USA, UK, and Euro Area will release PMI reports on June 23 from 10:15 to 16:45 MT.

18.06.2021 15:00 BOE meeting will influence the GBP

The Bank of England will release its statement and announce its monetary policy decision at 14:00 MT.

18.06.2021 14:55 Trade ideas for June 21-26

Last week the USD soared versus other major currencies, while gold headed for the biggest weekly loss in 15 months. Let’s see what new moves await us this week!