Market Roundup
- US Housing Starts No. MM Jun 1.174m, f/c 1.110m, 1.036m-previous.
- UK's Carney: not on a predetermined plan to raise rates, need to increase has moved closer.
- Euro zone bailout fund opens 3rd bailout talks with Greece (ESM).
- Fed's Fischer urges no further limiting of emergency lending rules.
- Atlanta Fed's GDPNow: US Economy on track to grow at 2.4% unchanged from July 14 (Atlanta Fed).
- US CPI MM, SA Jun 0.3%, f/c 0.3%, 0.40%-previous.
- US Real Weekly Earnings MM Jun -0.3%, -0.20%-previous.
- US U Mich Sentiment Prelim Jul 93.3, f/c 96.1, 96.1-previous.
- CA CPI BoC Core YY Jun 2.3%, f/c 2.2%, 2.20%-previous.
- BR IBC-BR Economic Act May 0.03%, f/c 0.2%, -0.84%-previous.
- White House: Rejecting nuclear deal would let Iran off 'scot-free', confident has strong House Democrat support for Iran deal
Looking Ahead - Economic Data (GMT)
- No Significant Data
Looking Ahead - Events, Other Releases (GMT)
- Sat Jul 18 06:00 Japan- Bank of Japan board member Yutaka Harada will participate in a panel discussing Japan's economic and fiscal reforms
Currency Summaries
EUR/USD
EUR/USD is supported around 1.0819 levels and currently trading at 1.0849 levels. It has made session high at 1.0870 and low at 1.0840 levels. The pair started to fall from 1.0880 levels, after the release of US CPI and Housing data. It hit low at 1.0859, later it retreated back towards 1.0867 levels after market stabilized from the impact of the news. After US session opened, the pair resumed to fall and made 7-week lows at 1.0840 levels. Just, shying away from major support level at 1.0819. The European Council approved €7 billion bridging loan for Greece, The loan was approved by Eurozone ministers, Meanwhile German parliament voted in favor of bailout negotiations for €86bn loan to Greece. To the upside, immediate resistance can be seen at 1.0915. To the downside, major support level is located at 1.0819. Overall trend of this pair is bearish in the medium and in the long term.
GBP/USD
GBP/USD is supported around 1.5554 levels and currently trading at 1.5610 levels. It has made session high at 1.5639 and low at 1.5551 levels. The cable fell from 1.5600 towards 1.5565 levels after the release of US CPI and Housing data, during the course of US session the pair hit low at 1.5554 and bounced off towards 1.5643 before retreating back towards 1.5606 levels. The pair is trading in a very choppy range, from past four days between 1.5671 and 1.5550 levels. Next week all eyes will be on Bank of England (BOE) minutes and UK retail sales figures. Bank of England's governor Mark Carney raised eye brows this week by stating, interest rates could be raised at the end of this year. To the upside, immediate resistance can be seen at 1.5671. To the downside, major support level is located at 1.5551. Overall the trend of the pair remains bullish in the short term.
USD/CHF
USD/CHF is supported around 0.9561 levels and currently trading at 0.9611 levels. It has made session high at 0.9619 and low at 0.9526 levels. The pair gained bullish momentum after US CPI and housing data was released at 12:30 (GMT). The pair surged and hit 3-months high at 0.9611 after crossing 0.9600 levels pair has been trading in bullish tone almost gaining 150 pips in the last three days. Next major technical hurdle for this pair is at 0.9719. The European Council approved €7 billion bridging loan for Greece, loan amount will help Greece to make payment of its dues to its creditors IMF and ECB on Monday. The outlook of this pair remains bullish in the short term, if the pair manages to hold above 0.9600 levels we can see the pair reach new highs in the coming week. To the upside, immediate resistance can be seen at 0.9624. To the downside, major support level is located at 0.9550.
USD/JPY
USD/JPY is supported around 123.50 levels and currently trading at 124.10 levels. It has made session high at 124.15 and low at 123.18 levels. The pair has reached overbought condition and trading in choppy range in-between 123.90 and 124.17, the pair failed to take off after US CPI and housing data was released. The pair mildly surged from 123.93 levels to 124. 14 levels in the US session. The rate hike speculation from Fed will keep this pair in bullish tone in the coming week, with the Greece crisis cooling down and Chinese stocks stabilizing, the safe heaven tag coming back to Yen is unlikely in the coming week. To the upside, immediate resistance can be seen at 0.9624. To the downside, major support level is located at 0.9550.
