EURUSD at Monthly Low, New UK Prime Minister to Drive GBPUSD

Nikolas Papas

Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).

UK prime minister

EURUSD at Monthly Low, New UK Prime Minister to Drive GBPUSD

July 23, 2019

Asian stocks finished higher today as U.S. trade negotiators will likely visit China next week for their first face-to-face talk with Chinese officials since the G20 meeting. The Nikkei225 ended 0.95 percent higher at 21,620, the Hang Seng finished 0.11 percent higher at 28,402. The Shanghai Composite ended 0.07 percent higher to 2,888, while in Singapore the FTSE Straits Times index finished 0.26 percent higher to 3,365.

Australian equities as of writing are trading 0.40 percent higher to 6717. Weekly ANZ Roy Morgan consumer confidence rating increased by 0.3% to 116.3 points, Consumer sentiment remains above the average of 114.4 points held since 2014 and the longer-term average of 113.1 points since 1990. The estimate of family finances compared with a year ago was up from +10.0 points to +13.1 points, the highest reading since February. 

European equities started the week slightly higher, DAX30 is adding 0.09 percent to 12,71, CAC40 is 0.01 percent higher at 5,552 while the FTSE MIB in Milan is trading 0.06 percent higher at 21,655. The London Stock Exchange is 0,18 percent higher to 7,521 amid non-deal Brexit worries.

In commodities markets, crude oil trades 0.08 percent higher at $56.27 as traders turn cautious on recent tensions in the Middle East. Brent oil finished trades 0.17% higher at $63,37 per barrel despite major oil producers have agreed to cut output. Gold is under pressure today at 1,417 keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,452.90, the recent high.      

In cryptocurrencies, Bitcoin (BTCUSD) trades lower today at 10,193, hitting the daily low at 10,162 and the daily high at 10,375. Immediate support for BTC stands now at $9,205 Friday’s low while next support stands at 9,000. On the upside, strong resistance now stands at 13,138 recent high and then at 13,500 round figure. Ethereum (ETHUSD) gives up almost 10 dollars and trades at 215 with capitalization now to 23.1 billion. On the upside, the immediate resistance stands at 317 Friday’s high while the support stands at 200 the 100-day moving average, Litecoin (LTCUSD) also trades lower at 93.75. The crypto market cap now stands above $280.4 billion.

On the Lookout: In Asian trading session the Singapore Consumer Price Index (year over year) came in at 0.6, missing expectations of 0.7 in June.

The announcement of UK next prime minister around 10:45GMT with Boris Johnson the favorite is the main event for today. Investors will closely watch the EU Consumer Confidence Index due at 14:00 GMT while in the US calendar we have the Existing Home Sales to be released at 14:00 GMT.

Trading Perspective: In forex markets, USD trades 0.16 percent higher at 97.45, the Aussie dollar trades 0.19 percent lower at 0.7021, while Kiwi also trades at 0.6732.

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GBPUSD Hourly (H1) Chart

GBPUSD is trading 0.14% lower at 1.2455 close to daily low. Major support now stands at 1.2381 Thursday’s low which if broken might accelerate the slide further towards 1.23 round figure. On the upside, immediate resistance now stands at 1.2662 the 50-day moving average while more offers will emerge at 1.2888 the 200-day moving average.  

Sterling futures markets open interest decreased by 1,100 contracts while volume decreased by 23,600 futures contracts.

EURUSD gives up 0.13 percent to 1.1191 making a fresh monthly low, facing the strong support at 1.1181, which if the pair manages to close below will open the way to 1.1113 yearly low.  On the upside, immediate resistance stands at 1.1200 round figure. 

Euro futures markets open interest decreased by 800 contracts while volume decreased by 71,800 futures contracts.

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EURUSD Daily Chart

USDJPY is trading 0.23 percent higher at 108.13 having hit the daily low at 107.82 and the daily high at 108.17. USDJPY pair will find support around 107.50 round figure and then at 107.00. On the upside, immediate resistance for the pair now stands at 108.98 the recent high and then at 110.04 the 100-day moving average. 

USDCAD is trading 0.15 percent higher at 1.3135 and continues the rebound from the lows around 1.30 amid USD strength, and the retreat in crude oil prices, Canada’s main export item seems to have added further weakness in the Canadian Dollar (CAD). The pair will find immediate support at 1.3017 the YTD low 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.  

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