18 July: US$ and stocks higher on Powell’s upbeat testimony. EU, UKI CPI today. More from Powell later.

By | July 18, 2018

 

Both the US$ and stock indices closed higher on Tuesday as Federal Reserve Chairman Jerome Powell expressed an optimistic view on the outlook for the US economy, while some solid earnings bolstered the outlook for a robust reporting period, allowing the Nasdaq to close at an all time high. Treasuries were unaffected by Powell’s upbeat view of life, while Gold felt the heat of the stronger dollar in falling by $12oz, to a new 12 month low of $1226. WTI was choppy but has again ended the day lower, now at 67.60. Powell told Congress  that strong US economic growth and stable inflation should keep the Fed on track to gradually raise short-term interest rates, but he also highlighted the growing risks to the economy if the Trump administration’s recent efforts to lower trade barriers result, instead, in permanently higher tariffs.

Wednesday will be a quiet session for Asia, with just the WBC Australian Consumer Confidence to provide any interest. Europe will look to the EU CPI (exp 0.1%mm, 2.0%yy) and the UK CPI, PPI, RPI (CPI, exp 0.2%mm, 2.6%yy; PPI, exp 2.1%yy). The US will see the Fed’s Powell continue his testimony, while in terms of data, the focus will be on the June Housing Starts and Building Permits. Have a good day.

CURRENCIES
EURUSD: 1.1661
Res  1.1700  1.1745  1.1760
Sup  1.1650  1.1615  1.1590
USDJPY: 112.84
Res  112.90  113.15  113.40
Sup  112.55  112.25  112.00
GBPUSD: 1.3115
Res  1.3135  1.3170  1.3200
Sup  1.3095  1.3070  1.3050
USDCHF: 0.9999
Res  1.0030  1.0070  1.0100
Sup  0.9965  0.9925  0.9905
AUDUSD: 0.7386
Res  0.7400  0.7415  0.7430
Sup  0.7375  0.7360  0.7345
NZDUSD: 0.6780
Res  0.6790  0.6805  0.6820
Sup  0.6770  0.6755  0.6735
INDICES / COMMODITIES
S&P.fs: 2812
Res  2815  2820  2830
Sup  2805  2795  2785
DJ30.fs: 25115
Res  25140  25200  25250
Sup  25055  24995  24960
SPI200.fs: 6176
Res  6190  6205  6225
Sup  6165  6150  6130
XAUUSD: 1227.46
Res  1235  1240  1245
Sup  1225  1220  1215
XAGUSD: 15.57
Res  15.65  15.80  16.00
Sup  15.50  15.35  15.20
WTI.fs: 67.68
Res  68.45  69.20  70.05
Sup  67.05  66.30  65.40