Investors’ focus on UK/US Inflation Data & Speeches of Draghi and Lowe today! What to expect?

FXPrimus has summarized the important market indicators of the day.

DOLLAR and EURO closed Monday unchanged while STERLING fell ahead of the release of inflation data today.

Bitcoin surged on Bitcoin Futures debut which has helped all altcoins move higher with liquidity increasing.

This morning the markets had a slow open with UK and US inflation data as well as Draghi’s and Lowe’s speeches scheduled in.

GBPUSD – The British Pound depreciates 100 pips from the daily high of $1.3430. STERLING slipped below the 61.80% FR at $1.3345 heading towards the 320 next ahead of the CPI release and the EU Summit near the end of the week. UK data showed Housing Inflation falling 2.60% from a previous 0.80% print yesterday, taking the pair below the ascending trendline shown on the 4-hour chart below.

USDJPY – DOLLAR steady above 113 on a quiet session, eyes on PPI ahead of FOMC. Dollar formed an indecision candle on the daily chart yesterday holding recent gains for another session while investors wait for the widely anticipated Fed’s rate decision tomorrow. DOLLAR fell from t a daily high of 113.7 as wage growth data weighed in. Market participant may find opportunities during today’s PPI release.
EURUSD – EURO holds above the 50.00% FR despite the technical downward pressure. EURO closed below $1.18 for a fourth consecutive session yet managed to hold firm above the 50 DMA and FR at $1.1756. The daily candlestick has formed a quiet bearish pattern which is likely to be validated once the 50 DMA breaks, in case that eventuates. Today, investors look forward to Draghi’s Speech in Frankfurt.

USOIL – OIL surges 70 cents per barrel higher on UK Brent pipeline disruption. OIL rose for a 3rd consecutive session as a major Brent pipeline disruption in the UK took Brent to a price not seen since 2015. Investors bought both Brent and Crude while waiting for the API and EIA reports today and tomorrow respectively. Oil could be heading to $60 if the reports are supportive.
XAUUSD – GOLD closes lower as FOMC approaches, bullish sentiment down to 17-Month low. Spot GOLD hit a July 19 low as widely expected hike weighs in. With the risk-on appetite increasing, Gold buyers have slashed their bullish bets taking price lower; the next support is at $1236.
US Indexes – Both DJ and S&P 500 rose by 0.23% and 0.32% respectively.
European Indexes – UK 100 appreciated by 0.80%, DE 30 fell by 0.23%
Asian Indexes – ASX 200 titled 0.18% higher, Hang Seng trades 0.51% lower.
US Equities – Twitter up-surged 4.50%, Tesla followed with a 4.37% raise.