28 July, AtoZForex – The Federal Reserve again opted to leave rates unchanged. Sending gold higher and the dollar lower. Attention now switches to the Bank of Japan policy meeting tomorrow as we highlight the daily Forex News and trade opportunities.
#1 Oil crashes further on increased stockpiles
Continuing its recent fall, oil prices have dipped even further, bouncing off three-month lows around 43.80 as we forecast in our analysis a few days back. Yesterday’s stockpile report from the Energy Information Administration (EIA), showed a surprising 1.7m build in stockpiles, as opposed to a fall of 2.3m forecast by economists. Sending prices crashing further down.
Opportunity: Sell oil on retracements higher
#2 Disappointing US data
We got a string of disappointing data from the US yesterday. The US core durable goods orders month on month came lower than expected. U.S. Durable Goods Orders fell by -4.0%, dropping further from the previous month at -2.8%. The pending home sales also disappointed, coming at 0.2%, lower than 1.9% forecast.
#3 EU Juncker appoints Brexit Chief Negotiator: Michel Barnier
Michel Barnier, the French Union for a Popular Movement politician and the ex-vice president of the European Commission, has been assigned as Brussels’ chief negotiator for the UK’s divorce talks. Mr. Barnier will be working under Jean-Claude Juncker formally starting from the 1st of October.
#4 Fed stays put
The Fed has kept its rates unchanged and reiterated a slow pace of tightening. Despite, the economy showing signs of improvement. The policy makers confirmed that near-term risks to the economic outlook have diminished. Economic activity has been expanding at a moderate rate. Labor market strengthened. Strong growth of Household spending. Yet, rates were left at target range 0.25 to 0.5 percent.
Opportunity: USD weakness imminent, sell USDJPY
#5 UK Prelim GDP impresses
Recent economic data from the UK have been quite impressive, although the prelim GDP report covers the pre-Brexit period. The quarterly prelim GDP released yesterday showed a 0.6% change in the inflation-adjusted value of all goods and services produced by the economy.
Opportunity: pair GDP against fundamentally weaker currencies. Hence, buy GBPUSD.
#6 More bad news for Europe, Italy still struggles
Italy’s banking sector has been plagued with controversy all year long. Italy’s third largest bank — Banca Monte Dei Paschi di Siena – is struggling to meet regulator compliance deadline. The bank has now asked about eight banks to guarantee a €5-billion ($5.49 billion) cash call for it.
#7 US unemployment claims
The labor market has been very stable lately. The number of individuals who filed for unemployment insurance for the first time during the past week is expected to remain within limit at 261K.
#8 German Prelim CPI m/m
The prelim CPI measures the change in the price of goods and services purchased by consumers. It is forecast to come higher at 0.2%, compared to 0.1% last month. While the German unemployment change is expected to show a -3k Change in the number of unemployed people during the previous month.
Opportunity: The EURUSD pair now looks bullish, hence, buy the pair positive data releases.
#9 Earnings season continues, Facebook the new winner
Facebook released its latest earnings report, with the tech company smashing expectations. Hence sending shares rallying 8% to a new all-time high.
#10 Bloomberg endorses Clinton
Concluding the daily Forex News and trade opportunities, former New York City Mayor Michael Bloomberg has endorsed Hillary Clinton for US president. He said: “Together, let’s elect a sane, competent person.”
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