All Eyes Will Be On US GDP Number And G20 Meeting
The US Dollar traded lower after the Fed Rate Decision last week. The Federal Reserve kept interest rates unchanged Wednesday but signaled it was ready to lower interest rates to combat growing global and domestic risks.
At his press conference, Federal Reserve Chairman Jerome Powell conceded there were some significant changes to the Fed's policy statement but suggested that the central bank was in no rush to cut rates.
In the upcoming week, investors will get updated figures on U.S. first-quarter GDP growth on Thursday. Gross domestic product is expected to come at 3.1%, the same as the previous number.
Moreover, we will pay attention to the G20 Meeting. The two-day summit gets underway on Friday. Last week, Trump announced that he would hold an “extended meeting” with Xi on the sidelines of the G20 summit in Japan.
In the Eurozone, the CPI inflation figures will also be published on Friday. The consensus forecast is that the report will show consumer prices rise 1.2% in May, remaining short of the European Central Bank's target of below 2%.
The EURUSD pair found buyers below the 1.1219 daily level and then closed last week above 1.1355. As long as the pair stays above 1.1355 on a daily basis, the upward movement may gain momentum and we will see 1.1450 as a resistance level. In contrast, if the price moves down below 1.1355, the key support level can be found at 1.1285.
Support: 1.1355 - 1.1285 - 1.1219
Resistance: 1.1450 - 1.1554 - 1.1648
Last Thursday, the Bank of England kept interest rates on hold at 0.75%, but stuck to its message that it plans to raise rates despite an ongoing lack of clarity on Brexit. Also, the bank cut its economic growth forecast for the second quarter of this year to zero from 0.2% in May.
We will focus on British first-quarter GDP for further hints on the health of the economy. On an annualized rate, the British economy is expected to grow by 1.8%.
The GBPUSD pair closed last week above the 1.2723 key support level. As long as the pair stays above 1.2723 on a four hourly basis, the sterling may gain more value versus the US Dollar. At this point, we will see the resistance level at 1.2807. In contrast, if the pair drops below 1.2723, the next daily support level will be at 1.2668.
Support: 1.2723 - 1.2667 - 1.2606
Resistance: 1.2807 - 1.2871 - 1.2931
The BoJ maintained the policy balance rate at -0.1%, asset purchases were unchanged. However, the statement sounded cautious, highlighting “significant” downside overseas economic risks including developments in China, noting the need to pay close attention to the impact on sentiment.
The Safe haven currency, Yen rose significantly versus the US Dollar last week. If the USDJPY pair stays below 107.70, on a four hourly basis, the fall may gain more momentum and we will face support level at 106.72. On the other hand, if the price goes beyond 107.70, the next resistance level can be seen at 108.49
Resistance : 107.70 - 108.49 - 108.95
The Gold Price surged sharply last week and hit its highest level since 2013 by geopolitical tensions, the possibility of lower rates and weakness in the dollar.
Keep your eye on the daily resistance level of 1402. In order for the bullish action to gain more momentum, it needs to stay above 1402 on a daily basis. At this point, Otherwise, we might see a taking profit action and the key support levels will be seen in 1394 and 1377 again.
Support: 1394 - 1377 - 1364 - 1351
23 Jun 19 (Sun)
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