MARKET BRIEFING – LONDON OPEN 30.07.2015
The United States Federal Reserve has voted in favour of keeping interest rates at the current levels of close to zero.
Although there was universal agreement among all the FOMC members, the improving state of the US economy was highlighted in the latest statement.
The FOMC said, “Economic activity has been expanding moderately in recent months.” This would seem to indicate that the improving economic climate would point to an interest rate rise sooner rather than later. Therefore, the bets are now on the Federal Reserve nominalizing the interest rate environment in September rather than December.
The FOMC in its statement noted the improvement on the Job and Real Estate market. Furthermore, there was also the satisfaction that consumer spending has finally begun to increase.
The inflation picture is still not at the target level, however, the Federal Reserve stated that a sustained move to the 2% objective will happen.
The FOMC through its action of deliberate forward guidance has now prepared the market for a period of higher interest rates. The US Dollar off the back of last night’s statement has appreciated during the early morning trading.
The British Pound, however, has traded in a tight range and has remained above the previous day’s lows. This is due to the expectation that the Bank of England soon will also begin to increase interest rates.
EURUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.1090
Target 2: 1.0876
Projected range in ATR’s: 0.0107
Daily control level: 1.1125
GBPUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.5698
Target 2: 1.5496
Projected range in ATR’s: 0.0101
Daily control level: 1.5585
USDJPY
The intraday technical outlook
Trend 1 hour: Up
Target 1: 124.57
Target 2: 123.29
Projected range in ATR’s: 0.64
Daily control level: 123.30
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.9752
Target 2: 0.9586
Projected range in ATR’s: 0.0083
Daily control level: 0.9600
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.3045
Target 2: 1.2841
Projected range in ATR’s: 0.0102
Daily control level: 1.2860
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7375
Target 2: 0.7213
Projected range in ATR’s: 0.0081
Daily control level: 0.7350
GOLD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1113.14
Target 2: 1080.38
Projected range in ATR’s: 16.38
Daily control level: 1105.00
OIL
The intraday technical outlook
Trend 1 hour: Up
Target 1: 50.41
Target 2: 47.31
Projected range in ATR’s: 1.55
Daily control level: 47.40
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