Asian indices finished mixed today as investors turn cautious ahead of Fed’s Jerome Powell testimony. The Nikkei225 finished 0.15 percent lower at 21,533 the Hang Seng finished 0.31 percent higher at 28,204. The Shanghai Composite finished 0.44 percent lower to 2,915, while in Singapore the FTSE Straits Times index finished 0.37 percent higher to 3,3415. Australian equities ended 0.4 percent higher at 6,689.
European equities also trading mixed today. DAX30 is giving up 0.26 percent to 12,403 CAC40 is 0.02 percent lower at 5,571 while the FTSE MIB in Milan is trading 0.85 percent higher at 22,071. The London Stock Exchange is 0,06 percent lower to 7,531 amid non-deal Brexit worries.
In commodities markets, crude oil trades 1.11 percent higher at $59.08 as traders turn cautious on trade war headlines. Brent oil trades flat at $64,09 per barrel despite major oil producers have agreed to cut output. Gold today consolidates at 1,393 keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,400 round figure and then at 1,437 recent high.
In cryptocurrencies market, Bitcoin (BTCUSD) rallies above 13,000 and retreated at 12,973, hitting the daily low at 12,323 and the daily high at 13,138. Immediate support for BTC stands now at $12,000 while next support stands at 11,500. On the upside, strong resistance now stands at 13,138 the daily high and then at 13,500 round figure. Ethereum (ETHUSD) trades lower at 307 with capitalization now to 33.07 billion, on the upside the immediate resistance stands at 317 yesterday high while the support stands at 243 the 50-day moving average, Litecoin (LTCUSD) also trades higher at 118. The crypto market cap now stands above $355.0 billion.
On the Lookout: The UK Gross Domestic Product, Month over Month, came in at 0.3% in line with forecasts for May. The Industrial Production came in at 0.9%, worse than expectations of 1.1% in May. The Trade Balance; non-EU registered at £-4.905 billion, below analysts’ forecasts of £-4.7 billion in May. The Industrial Production, Month over Month, came in at 1.4% also below expectations of 1.5% in May.
The Australian Westpac-Melbourne Institute Index of Consumer Sentiment fell 4.1% to 96.5 in July from 100.7 in June. The China Consumer Price Index, Month over Month, came in at -0.1% for June, while the Producer Price Index, Year over Year, came in at 0% below market consensus of 0.3% in June.
Fed Chair Jerome Powell testimony on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC, will start at 14:00GMT. The FOMC Meeting Minutes will be released at 18:00 GMT and will shed more light on the Fed’s thinking.
Trading Perspective: In forex markets, USD trades flat at 97.44 ahead of Fed’s Jerome Powell testimony. The Aussie dollar trades lower at 0.6920, while Kiwi also trades lower at 0.66.
GBPUSD is trading higher at 1.2473 after the UK Gross Domestic Product, Month over Month, came in at 0.3% in line with forecasts for May. Major support now stands at 1.24 which if broken might accelerate the slide further towards 1.23 round figure. On the upside immediate resistance now stands at 1.2518 the 50-hour moving average while more offers will emerge at 1.2547 the 100-hour moving average.
Sterling futures markets open interest increased by 4.900 contracts while volume also increased by 20,000 contracts.
EURUSD trades higher at 1.1220 but needs to break above 1.1237, the 50-day moving average to attract the bulls. On the downside, immediate support for the pair stands at 1.1211 the 50-hour moving average while extra support will be met at 1.12 round figure.
Euro futures markets open interest increased by 1,500 contracts while volume decreased by 7,900 contracts.
USDJPY is trading 0.13 percent higher at 108.90 having hit the daily low at 108.79 and the daily high at 108.98. USDJPY pair will find support around 108 round figure and then at 107.50. On the upside, immediate resistance for the pair now stands at 108.98 the daily high and then at 109.07 the 50-day moving average.
USDCAD rebounds above the 1.31 level at 1.3122 amid broadly USD strength, the daily high was at 1.3136, despite the crude oil prices retreat, Canada’s main export item seems to have added further weakness in the Canadian Dollar (CAD). The pair will find immediate support at 1.3060 the low from February 1st while extra support stands at 1.30 round figure. On the upside immediate resistance now stands at the 1.32 zone before an attempt to 1.3450 recent high from 31st May.
