The Fed kept interest rates unchanged, the benchmark interest rate of 1.75-2%. The Fed maintains its economic outlook and reiterates its support for a interest rate hike. The market expects the Fed to raise interest rates next month and raise another interest rate in December.
The ADP employment in the United States has risen, and the growth rate is far higher than market expectations. The market expects that the US non-farm payrolls will increase on Friday and the unemployment rate will fall. The only market focus is on the average hourly wages announced that day.
Today, the Bank of England announces its interest rate decision, the market generally expects to raise interest rates, the target rate rose to 0.75%. It is a pity that after the UK raises interest rates, whether the pound can continue to rise is still in doubt. Coupled with the strong economic growth in the United States, there are also interest rate hike expectations, limiting the upward momentum of the pound.
The US government has imposed conditions on China's trade negotiations. It plans to implement a new round of trade tariffs at the end of August. It will increase its US$200 billion into US goods, from the original plan of 10% to 25%. The Sino-US trade war has once again entered a deadlock. The offshore RMB exchange rate is under pressure in the short term. Keep an eye on the latest developments. That will be affected global economy and stock markets.
Today's suggestion
1.1685/1.1700 resistance1.1645/1.1620 supportUS ADP employment data growth in July, and it is expected that US non-farm payrolls data will perform better on Friday. The dollar is strong, and Europe and the United States are bearish. On the eve of the announcement of non-farm job data, EURUSD will continue to downward.
1.3140/1.3165 resistance1.3070/1.3045 support. Although the Bank of England has a interest rate, it is widely believed that the central bank will raise interest rates. However, the UK's economic performance is not strong. The interest rate hike may be only short-lived, and it is more likely to affect economic growth. On the eve of the expected non-farm job data, the US dollar remains on the downside. If the pound rebounds, pay attention to the downside risk.
0.9905/0.9885 support0.9935/0.9955 resistanceThe trend of Swiss francs has developed with Europe and the United States. On the eve of the announcement of non-farm job data, Europe and the United States will continue to move downward. The Swiss franc also fell, and the US and Switzerland will develop an upward trend.
111.55/111.40 support112.05/112.20 resistanceThe US and Japanese stock markets fell, the US and Japan downward. It is believed that the current stock market changes are more likely to affect the fluctuation of the dollar against the yen.
0.7405/0.7420 resistance0.7385/0.7370 supportBefore the Fed’s interest rate and US employment data were released, the US dollar strengthened and the Australian dollar fell. The Fed’s hawkish stance, the Australian dollar will be further bearish . On the eve of the announcement of non-farm job data, AUDUSD maintained a downward.
0.6795/0.6805 resistance0.6775/0.6760 supportThe US dollar has performed strongly, and the New Zealand dollar has the opportunity to try lower support. On the eve of the announcement of non-farm job data, New Zealand maintained a downward.
1.3005/1.2990 support1.3050/1.3065 resistanceThe oil price rebounded at $67, which is good for the Canadian dollar. However, on the eve of the release of non-farm job data, the US dollar was strong and bearish for the Canadian dollar. It is estimated that the USD/CAD will develop an upward.
0.8910/0.8930 resistance0.8880/0.8870 supportThe euro is adjusted against the pound. At present, attention is paid to support at 0.8880, and attention should also be paid to risk management and stop loss protection. Waiting for the technical rebound of the pound.
1.1560/1.1550 support1.1595/1.1605 resistanceThe euro has double bottom support against the Swiss franc, and the technical oscillator has a divergence. It is estimated that the euro against the Swiss franc is waiting to rebound. If the rebound can refer to the upper target 1.1615/1.1635 resistance. The short-term resistance is 1.1595/1.1605.
1219/1217 support1223/1225 resistanceThe Fed’s interest rate decision remained the interest rate unchanged, which is bullish for gold. However, the US job market is improving, limiting the increase in gold. On the eve of the announcement of non-farm job data, gold maintained a downward.
US crude oil futures
69.05/69.85 resistance67.25/67.05 supportThe market digested the news that US A crude oil inventories increased, and oil prices rebounded. Now the US job market forecasts are strong, it will bullish the oil prices.
7670 / 7745 resistance 7225 / 7070 support Failed to 8420 resistance, the trend reversed. The market concern the Fed’s monetary policy. The FOMC hawkish remarks now bearish the crypto currencies.
Disclaimer: The above is for reference only; the market is risky and investment needs to be cautious. Trading must included risk management! Wishing happy trading! Information provided by ATFX, Chief Analyst of Asia Pacific: Martin Lam