Market Brief
Markets are currently subdued in the Asian session, with EURUSD held in a tight range trading from a low of 1.3915 to a high of 1.3977. The USDJPY is trading in the range 92.35- 92.95. Last week proved to be a difficult one for the so-called risky assets. Both commodities and equities sold off with strong buying in JPY (and to a lesser extent, USD). While Asian equity markets had a tough going (Nikkei down -2.55%), European stock markets are currently rallying off the days lows. Overall, we expect FX price action to remain choppy, but traders to respect the ranges. The BoE will hold its reverse action today but in smaller sizes, in order to spread out purchases to the next policy meeting (August 8th). Last week, the BoE opted not to expand its asset purchases until it has a better understanding of the effects. We believe the BoE will expand its purchases, potentially before Augusts meeting, which should be sterling negative. And in Japan, the ruling party of the LDP lost its majority, which means PM Aso will struggle to hold onto his position. We donÕt expect the political uncertainty to have a profound effect on JPY pricing, as the JPY has been trading largely on macro trends and not on underlying domestic activities.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 9,050.33 | -2.55 |
| Hang Seng Index | 17,244.98 | -2.61 |
| Shanghai Index | 3,080.56 | -1.07 |
| FTSE 100 Index | 4,129.78 | 0.06 |
| DAX Index | 4,573.97 | -0.05 |
| SMI Index | 4,573.97 | -0.04 |
| DJIA futures | 8,067.00 | -0.22 |
| World Markets | Current Level | % Change |
| Gold | 913.26 | 0.02 |
| Silver | 12.62 | -0.39 |
| VIX | 29.02 | -2.55 |
| Crude wti | 59.71 | -0.3 |
| USD Index | 80.3 | 0.07 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Budget balance, $ bn Jun | -77.5 | 33.5 (08) | USD / 18.00 |
| RICS housing market survey, price balance Jun | -40 | -44.1 | GBP / 23.01 |
| BRC retail sales monitor, total sales, % y/y Jun | -- | 0.8 | GBP / 23.01 |
Currency Tech
AUDUSD
R 3: 0.8155
R 2: 0.8038
R 1: 0.7890
CURRENT: 0.7751
S 1: 0.7724
S 2: 0.7630
S 3: 0.7550
EURJPY
R 3: 132.82
R 2: 131.90
R 1: 130.88
CURRENT: 128.89
S 1: 126.98
S 2: 126.30
S 3: 124.39
USDCAD
R 3: 1.1975
R 2: 1.1815
R 1: 1.1725
CURRENT: 1.1626
S 1: 1.1544
S 2: 1.1500
S 2: 1.1419
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
