Global Markets:
- Asian stock markets: Nikkei up 0.40 %, Shanghai Composite fell 0.40 %, Hang Seng rose 0.05 %, ASX 200 rallied 1.70 %
- Commodities: Gold at $1223 (+0.30 %), Silver at $16.03 (-0.35 %), WTI Oil at $46.80 (-0.55 %), Brent Oil at $49.40 (-0.60 %)
- Rates: US 10-year yield at 0.48, UK 10-year yield at 1.26, German 10-year yield at 0.48
News & Data
- Australia Retail Sales 0.6 % vs 0.2 % expected
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index Jul 114.5 (prev 111.8)
- South Korea CPI (M/M) Jun: -0.20% (prev 0.10%; est -0.10%)
- Japan Monetary Base 17.0 % vs 19.2 % expected
- New Zealand NZIER Business Confidence 18 % vs 17 % previous
- Asian shares track U.S., European gains, dollar hovers near seven-week high – RTRS
- Oil rises more than 2 percent as U.S. crude output slows – RTRS
Markets Update:
The US Dollar consolidated regained some strength after solid US economic data releases. EUR/USD fell to 1.1355 in Asia. After the break below 1.1370, the next major support level is now seen at 1.1320. The outlook remains positive, and buying interest is likely to remain high on larger dips.
GBP/USD was rejected at 1.3020 resistance on Monday and retraced to 1.2930. Key support is seen at 1.2920. A break below would signal that the pair is likely to retest 1.2850 support soon.
USD/JPY rallied yesterday amid broad USD strength and rising stock markets. The pair reached 113.40 overnight and there is little resistance until 114.40 now. Support is noted at 113 and 112.60.
The Australian Dollar rose after better than expected Retail Sales data. However, the pair quickly retraced the rally and settled around 0.7660/70 for the rest of the trading session.
WTI is back above $47 and the outlook for Oil has turned positive. This could keep USD/CAD under pressure. Following the break below 1.2970 support, the next major support level now lies at 1.28.
Upcoming Events:
- 09:30 BST – UK Construction PMI
- 13:30 BST – ECB Member Praet speaks
