MARKET BRIEFING – LONDON OPEN 17.08.2015
Friday’s positive US data helped the US Dollar Index to rebound from the recent decline, when the currency was trading at the four-week low, below 96.00 last week.
The monthly Producer Price Index, representing the change in the price of finished goods and services sold by producers and leading indicator of the consumer inflation, came to 0.2%, higher than projected 0.1%.
Preliminary UoM Consumer Sentiment has declined for the second consecutive month, published at 92.9, comparing to the expected 93.5 figure. Financial confidence is of crucial importance to the consumer spending and is accounting for the majority of economic activity. The overall trend for the data is on the rise since the middle of 2011.
This morning Asian shares continued on the way down as Chinese market slump is still pressuring the global marketplace. Despite the fact that the Yuan has stabilized for the last number of days, underlining concerns regarding weaker Chinese economy and possibility of the further Yuan depreciation is one of the substantial obstacles for the market to recover.
Last week’s China’s currency devaluation caused the investors to consider other markets such as Turkey and Malaysia, with the both countries undergoing political crises at the moment.
Oil prices dropped to the six-year low as more oil rigs were opened last week. This has put an additional weight on the oil-export depending economies. USDCAD is nearing to retest 11-year low of 1.3210 it reached a week ago. Australian Dollar has also rebounded lower and is now trading around 0.7350 level, close to the AUDUSD six-year low of 0.7210.
With the markets weakening globally, it will probably add a further boost to the US currency, as for now it is considered a “safe heaven” investment, with so many markets facing high volatility and unpredictability. In addition, the potential interest rate hike later this year, adds strength to the major world reserve currency.
Today proves to be a rather quiet day with regards to the economic news releases. Adding that it is also the middle of the holiday’s month, no major market moves are expected to occur today.
EURUSD
The intraday technical outlook
Trend 1 hour: Range
Target 1: 1.1226
Target 2: 1.1006
Projected range in ATR’s: 0.0110
Daily control level: 1.1210
GBPUSD
The intraday technical outlook
Trend 1 hour: Range
Target 1: 1.5751
Target 2: 1.5551
Projected range in ATR’s: 0.0100
Daily control level: 1.5670
USDJPY
The intraday technical outlook
Trend 1 hour: Range
Target 1: 124.93
Target 2: 123.51
Projected range in ATR’s: 0.7129
Daily control level: 125.25
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.9843
Target 2: 0.9661
Projected range in ATR’s: 0.0091
Daily control level: 0.9710
USDCAD
The intraday technical outlook
Trend 1 hour: Range
Target 1: 1.3213
Target 2: 1.2967
Projected range in ATR’s: 0.0123
Daily control level: 1.2910
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7465
Target 2: 0.7283
Projected range in ATR’s: 0.0095
Daily control level: 0.7425
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1129.59
Target 2: 1099.39
Projected range in ATR’s: 15.10
Daily control level: 1077.00
OIL
The intraday technical outlook
Trend 1 hour: Down
Target 1: 50.34
Target 2: 47.20
Projected range in ATR’s: 1.5664
Daily control level: 55.50
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