Russian-Ukrainian conflict is influencing every economic aspect…
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!
Last week was full of surprises! The US dollar plunged despite a better-than-expected retail sales report…
Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.