The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
What drives the market on July 15?
Optimism about the Moderna vaccine improved the market sentiment. Let’s have a closer look, what’s happening today.
- Moderna reported successful human trials on the Covid-19 vaccine. All the patients produced antibodies to the virus after the injection. Of course, it doesn’t mean that the vaccine will be effective, but it’s a significant step to control the disease.
- Sino-American tensions got even worse. The US president Donald Trump issued an order to end Hong Kong’s special status with the US and imposed sanction on China. Beijing tends to respond with its own sanctions.
- The British consumer price index came out better than analysts expected. It turned out 0.6%, while the forecast was 0.4%. The British pound gained on positive news.
- The Bank of Japan has made the monetary policy statement this morning. Officials left everything unchanged as they had made already everything possible to support the economy. The economic activity is gradually rebounding in Japan. However, the central bank lowered its growth forecasts and assured that it would take extra measures if needed.
EUR/USD has been climbing up for a fourth day in a row. It’s heading towards the high of March 9 at 1.1445. If it crosses it, it may surge even to the key psychological mark at 1.15. While the US dollar continues waning amid the current risk-on sentiment, it’s quite possible. Anyway, support levels are at 1.1280 and 1.1215.
Gold is trading sideways. It’s stuck in a range between $1 794 and $1 815. If it crosses the resistance at $1 810, it may surge to the next one at $1 815. Support levels are $1 800 and $1 794.
The British pound got a tailwind from the better-than-expected CPI. GBP/USD has formed a long-legged doji pattern on the daily chart, which reflects a great amount of indecision on the market. The pair will meet the resistance at the 200-day moving average at 1.268. If it breaks it through, it will surge higher to 1.275. Support levels are at 1.2415 and 1.2300.
The Australian dollar gained amid the present risk-on sentiment. It approached the key resistance at 0.7015 and reversed. Now it’s moving towards the 50-day moving average at 0.6956. If it breaks it down, it will fall to the next support at 0.6925.
- The Bank of Canada will report its rate statement and make a monetary policy statement at 17:00 MT time. An hour later it will hold the press conference.
- The US crude oil inventories will be released at 17:30 MT time! Stay tuned!
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.
2022 was rough: inflation, energy crisis, and plenty of other controversial situations…