Currencies
EUR/USD – we are breaking through the resistance around the 1.12 level again as we are awaiting more European data and also data out of the US. However, tomorrow will be very important with the FOMC and ECB meeting minutes.
USD/JPY – is coming close to break below the 100 level again, as the USD keeps on weakening. Perhaps the FOMC meeting minutes of tomorrow will be able to stem the tide and cause a reversal.
GBP/USD – dropped below the 1.29 level and reached the lowest level in over a month. This morning we are moving up a bit as the USD is weakening. Today we will have important data out of the UK, partly also after the Brexit vote and also data out of the US.
USD/CAD – has been moving down due to a combination of USD weakness and the rising oil price. We are approaching the support around the 1.285 level.
Commodities
Gold – is rising again as the prospects for a rate hike by the FED this year are decreasing. However, as we have seen, a release of some good data could quickly turn the sentiment around, so we will keep a close eye on the data, and especially the language of the FOMC meeting minutes tomorrow.
Oil – climbed to the highest level in nearly a month to reach the resistance level, which has stopped the rise (for now?). Russia has said that it is willing to cooperate with OPEC to balance the oil market. However, at what levels will a possible freeze be, as several countries have increased their production over the last few months, while other countries have seen a drop? They will be unlikely to agree to freeze their output at the current levels. In short, there is a lot not known and the likelihood for an agreement is quite low, as it was last time as well. Still, we can see what an effect several comments can have on the market. It will be interesting to see how the market will react if and when the freeze doesn’t happen.
Stocks
Apple (NASDAQ:AAPL) / Berkshire Hathaway (NYSE:BRKa) – Berkshire Hathaway announced that it has increased its stake in Apple by 55%, which means the company believes in the success of Apple and that it will be able to maintain a steady revenue stream and profits.
BHP Billiton (LON:BLT) – reported a large loss of nearly $6.4 billion as it is still struggling with the low commodity prices.