[B]Daily Fundamental Dose: 20-July-2016[/B]
Hello Traders,
Unlike Monday when global equities maintained their upswing and Fx witnessed mixed results, the Tuesday closed with a pullback from usual direction as weaker earnings report from some of the big enterprises, coupled with IMF’s cut to macro growth forecast, again helped the safe-havens. However, the US Dollar Index (I.USDX) managed to mark a fresh four months high on upbeat housing market reports while the GBP ignored better than forecast CPI as IMF cut down its 2017 growth forecast to 1.3% from 2.2% on Brexit concern. The EUR also dropped with disappointing ZEW economic sentiment numbers while the JPY and Gold enjoyed its risk-free status for the first time in previous four-days. Further, the AUD and NZD kept running down with on-going market consensus of a lose monetary policy actions from RBA & RBNZ respectively while the CAD remained weaker due to a dip in Crude prices to the lowest in two-month as smooth supply during the geo-political tensions signaled a global supply-glut formation.
Markets again joined the Monday moves during early trading sessions on Wednesday when the UK job reports and US Crude oil stockpiles are scheduled for release. However, the US Dollar refrained from declining as the overall technical favor additional strength of the greenback which in-turn favors further dips in Crude and Gold prices.
Forecasting today’s market, it becomes important to have a look at the UK Claimant Count Change as it is the only numbers among all three Job details that would include the Brexit time, rest two, namely Unemployment Rate and Earnings, will flash the data through May-end and might already have been priced in. Additionally, there aren’t any big releases to observe from US while an unscheduled economic assessment from RBNZ during the day-end could be important for the NZD traders and can further weaken the NZDUSD to 0.6950 mark. On the other hand, EURUSD is more likely to drop below 1.0900 while weaker UK details can drag the GBPUSD to sub-1.0300 area.
Have a nice trading-day……