Daily Review for August 12, 2021
Good economic data in the UK, shows that the BoE’s measures have paid off. GDP meets market expectations. However, Trade Balance continues in negative territory, which could lead to the depreciation of the sterling pound to stimulate exports.
U.S. inflation remained in line with market expectations. It is still far from the 2% annual inflation target. The Fed continues to evaluate the data to develop the best possible action plan. Gold remains sideways.
Walt Disney reports results. The Dow Jones remains sideways awaiting further strength from buyers.
Crude oil prices could look for USD$70 per barrel depending on the OPEC report. The main obstacle to market growth is the Delta variant.
| GBPUSD -0.03% |
| Important economic data for the UK economy has been realeased. The RICS index showed rising housing prices. Business investment increased 2.4% during Q2. Quarterly GDP (Q2 2021) came in at 4.8%, meeting market expectations. The trade balance remains in negative territory, indicating that imports are greater than exports. Overall, the UK economy is recovering. The GBPUSD is currently down 0.03% and is trading at 1.3867. |
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| Support 1: 1.3867 Support 2: 1.3863 Support 3: 1.3859 Resistance 1: 1.3874 Resistance 2: 1.3877 Resistance 3: 1.3881 Pivot Point: 1.3870 |
| The currency is below the 200-day moving average. The price is at resistance 1 which could generate a slight pullback or trend confirmation. Trading range between 1.3859 and 1.3881. Pivot point at 1.3870. RSI neutral. |
| GOLD +0.06% |
| The natural anti-inflationary asset is showing a sideways week with downward pressure. Inflation in the United States is at 0.5% per month, which means that the inflation target of 2% per year is still far away. The above, managed to keep the price of gold above the level of USD$1,723, and has managed to gain additional points, standing at this moment at USD$1,752 per Troy ounce. The metal could now react to the performance of the European stock indexes, where traders are starting to take positions based on the US inflation data. |
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| Support 1: 1,751.95 Support 2: 1,751.15 Support 3: 1,749.95 Resistance 1: 1,753.95 Resistance 2: 1,755.15 Resistance 3: 1,755.95 Pivot Point: 1,753.15 |
| Gold price is at resistance 1, but remains below the 200-day moving average. Expected trading range between USD$1,749 and USD$1,755. Pivot point at USD$1,753. RSI in overbought zone. If the metal maintains its trend, the price could look for USD$1,792. |
| DOW JONES -0.08% |
| Today Walt Disney, a Dow Jones company, presents its financial results. The market expects an EPS of 0.5454 and an operating income of USD$16.76 billion. The pandemic has affected tourism, which could put pressure on the company’s sales. For its part, the index is currently down 0.08% and is trading at 35,351. Inflation data continues at an important level, which means that Tapering by the FED is not expected in the short term. Therefore, investors may continue their purchases in equities, which favors the index. |
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| Support 1: 35,459.5 Support 2: 35,451.3 Support 3: 35,441.4 Resistance 1: 35,477.6 Resistance 2: 35,487.5 Resistance 3: 35,495.7 Pivot Point: 35,469.4 |
| Price is above the 200-day moving average. Price is at resistance 1. Possible breakout or advance towards 35,500. Ichimoku cloud projects a trading range between 35,193 and 35,351. Pivot point at 35,469. RSI leaving the overbought zone. |
| CRUDE OIL -0.29% |
| Crude oil price is currently down 0.29%, trading at USD$68.82 per barrel. OPEC’s monthly report will be published today. The most important chapter is the demand projection. In recent months, the increase in overland travel and the opening of air borders has boosted demand for crude oil. However, over the last few weeks, the spread of the Delta variant has started to put pressure on the market, causing the WTI price to fall from the USD$74 level to the current level of USD$68. |
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| Support 1: 69.12 Support 2: 69.05 Support 3: 68.93 Resistance 1: 69.31 Resistance 2: 69.43 Resistance 3: 69.50 Pivot Point: 69.24 |
| The price is at resistance 1, looking for USD$70. If it reaches this level, a double top would be triggered, where the price would need more buying volume to overcome this zone. Everything depends on the OPEC report. Expected trading range between USD$68.93 and USD$69.50. Pivot point for trend change at USD$69.24. RSI neutral, leaving the overbought zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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