Currencies
EUR/USD – moved up after the better than expected data out of Germany, but was held back by the resistance around the 1.10 level. We can see there is another attempt to break through this resistance level at the moment.
USD/JPY – is seeing another large drop as there are reports that the stimulus that the Japanese government is planning to announce will fall short on expectation, as it will be less than what was reported last week.
GBP/USD – is seeing less and less volatility and appears to be trading in a range between the 1.305 and 1.3 level at the moment. However, we can expect this to change soon as we will be waiting for the GDP data out of the UK tomorrow and the FOMC statement. It remains to be seen how much upside there is at the moment, as we are expecting a rate cut and likely further measures next month by the BOE. The likelihood for this has significantly increased as only last week MPC Waele said that it was not certain he would support measures such as a cut in interest rate, but after seeing the PMI data on Friday, he now says he supports immediate measures by the BOE.
USD/CAD – has continued to move further up as oil keeps on dropping. We are now approaching the next resistance just below the 1.33 level, to reach the highest level since March.
Indices
S&P 500 – dropped slightly yesterday, but is pretty much unchanged from yesterday. A lot will depend on the earnings and the FOMC statement tomorrow. Usually we see that oil/energy prices have an effect on the S&P, but this has not really been the case lately.
Commodities
Gold – has dropped again, but so far is able to remain above the 1310 level as we will wait to see what the FOMC statement will hold and if they will signal that an interest rate increase is a good possibility in September. While there is obviously the possibility that the FED might increase the interest rate this year, but we should not forget there is also still a lot of possible upside with enough risk in the markets, mainly due to the Brexit vote.
Oil – reached the lowest level since April amid a continuing drop of oil prices. It is trading near the support around the 43.25 level at the moment, and when that will be broken, the next support will be the psychological 40 level and then only around the 38 level. There is also some expectation that we will see higher than expected inventories this week which should cause oil to drop further, especially if this is in combination with yet another rise in production. The sentiment itself has also changed, and while there were many that said that the worst is behind us and we are headed for higher prices, this has changed and now we are seeing renewed expectations by some that we will see another serious drop in oil prices.
Stocks
With earning season in full swing, I would advise you to always check when earnings are released. You can obviously refer to the list I sent out 2 weeks ago.
Apple (NASDAQ:AAPL) – as mentioned yesterday, Apple will be releasing its earnings today. Twitter – will also be releasing its earnings today.
Yahoo (NASDAQ:YHOO) & Verizon – as expected it was announced that Verizon is taking its internet business for $4.8 billion. Verizon will combine the newly acquired business with AOL. Verizon will also be releasing its earnings today.