Currencies
EUR/USD – continues to move higher as the USD is weakening. The nearest support can be found around the 1.12 level and the resistance around the 1.1375 level and at the moment it is trading more or less in between these 2 levels.
USD/JPY – is currently trading just below the support level around the 111 level as the support was able to hold yesterday, but today it looks like a break is imminent. As mentioned yesterday, the coming 2 days will be crucial with policy decisions by the FED and the BOJ.
GBP/USD – as it now seems more likely that a Brexit will not occur, we can see the GBP strengthen in combination with a weakening of the USD. While yesterday we were still unable to breach the resistance at the 1.45 level, this morning we are seeing what seems to be a breach of the resistance. Good data out of the UK and we could see the pair actually base itself above this level. Bad data could send it down again to test the level again as support this time.
Indices
Dollar Index – is once again breaking below the support around the 94.570 level and as such is continuing its downwards trend.
Comodities
Gold – moved up to the resistance around the 1240 level but was unable to base itself above this level. We can expect more volatility as we get closer to the rate decision and the FOMC statement.
Oil – dropped below the 43 level as it appears that there is no letup in production. Kuwait, Saudi Arabia, Iran and Libya are all producing or trying to produce even more oil, which is not benefiting the already oversupplied market. The only positive thing is that production in the US continues to decline. If this is still the case we will know tomorrow when the inventories and production data will be released.
Stocks
Apple (NASDAQ:AAPL) – will be releasing its earnings today after the market closes.
BP (LON:BP) – announced its earnings and came in a surprising profit of over $500 million, which is much lower than the profit of the same quarter last year of over $2.6 billion, but nevertheless better than expected as a loss of $250 million was expected.
By Shawn Koopman