Check out today’s market highlights!
Trump meets with EU’s Juncker
US president Trump is to meet with European Commission President Juncker, later today in Washington.
The meeting is expected to focus on the US tariffs on steel and aluminium as well as their extension to European cars.
The main aim of president Juncker is expected to be a de-escalation of the trade tensions between the two large economies.
Analysts state that a potential escalation could hurt the risk sentiment of the market for USD, not only against EUR but against JPY as well.
EUR/USD remained in a sideways movement, as analysed yesterday, well between the boundaries of the 1.1745 (R1) resistance line and the 1.1640 (S1) support line.
We could see some relatively increased volatility on the pair today should the Trump-Juncker meeting display progress, however currently we retain our sideways bias.
Technically, it would be evident to note that the RSI indicator in the 4 hour chart remained near the reading of 50, implying an indecisive market.
Should the bulls lead the charge in the pair’s direction we could see it breaking the 1.1745 (R1) resistance line and aim for the 1.1830 (R2) resistance hurdle.
Should on the other hand the bears be in the driver’s seat, we could see the pair breaking the 1.1640 (S1) support line and aim for the 1.1580 (S2) support barrier.
Theresa May takes control of Brexit negotiations
Theresa May announced yesterday that she will lead the Brexit negotiations with Secretary for Exiting EU deputising on her behalf.
The announcement, practically relegates the Brexit department and was perceived by analysts as a move towards a softer Brexit.
Analysts also see the case for Theresa May’s EU advisor Robbins to gain more influence over the Brexit negotiations and play a key role.
The pound strengthened upon the news and should there be more headlines indicating further consolidation of the UK political scene we could see the sterling getting further support.
Cable rose yesterday, testing the 1.3160 (R1) resistance line, however without any success in breaking it.
We could see the pair continue its sideways movement maybe with some bearish tendencies as the 1.3160 (R1) resistance level proved to be strong.
Should the pair come under selling interest we could see cable aiming if not breaking the 1.3050 (S1) support line.
On the other hand, should the market favor the long positions, we could see the pair breaking the 1.3160 (R1) resistance line and aim for the 1.3270 (R2) resistance zone.
In today’s other economic highlights:
In the European session we get Germany’s Ifo Business Climate and Current Conditions indicators for July, while in the American session we get the new home sales figure for June and the EIA crude oil inventories figure.
Please note, that oil didn’t have much of a reaction to the release of yesterday’s API weekly crude oil stocks drawdown of -3.170 million barrels.