Canadian Dollar Advances As CPI, Retail Sales Beat Forecasts

By | July 21, 2017

The Canadian dollar climbed up against its major opponents in the European session on Friday, after better-than-expected domestic customer cost inflation for June and retail sales for May.

Data from Statistics Canada revealed that consumer rate index was flat on a seasonally changed regular monthly basis, following a 0.2 percent slide in May. Economists were trying to find a 0.1 percent drop.

Core CPI, excluding food and energy, rose 0.2 percent on a seasonally changed monthly basis, from a 0.1 percent gain last month.

Retail sales increased for the third successive month, increasing 0.6 percent to $48.9 billion in May.

This exceeded projections for a 0.3 percent uptick and follows a downwardly modified 0.7 percent boost in April.

Core retail sales, leaving out motor vehicle and parts dealers, dropped 0.1 percent month-on-month in May, compared with a downwardly modified 1.3 advance in the previous month. The index was anticipated to be flat.

On the other hand, oil prices fell ahead of the OPEC meeting next week, when OPEC and Russia will satisfy in Moscow to discuss their supply quota plan.

Petroleum for September shipment fell $0.72 to $46.20 a barrel.

The loonie showed combined efficiency in the Asian session. While the loonie dropped against the euro and the greenback, it held stable versus the yen. Versus the aussie, it increased.

The loonie advanced to 1.2546 versus the greenback, off its early low of 1.2609. The next possible resistance for the loonie is seen around the 1.24 location.

Having fallen to a 9-day low of 1.4683 versus the euro at 2:45 am ET, the loonie climbed to 1.4601. Extension of the loonie’s uptrend may see it challenging resistance around the 1.45 mark.

The Study of Expert Forecasters published by the European Reserve bank revealed that the Eurozone economy is anticipated to broaden at faster than expected pace.

SPF respondents raised 2017 development outlook to 1.9 percent from 1.7 percent and that for next year to 1.8 percent from 1.6 percent. Expectations for 2019 was raised partially to 1.6 percent from 1.5 percent.

The loonie was selling a favorable area versus the aussie with the pair trading at 0.9955. This may be compared with a 3-day peak of 0.9920 set at 11:45 pm ET. More uptrend may take the loonie to a resistance around the 0.97 region.

The Reserve Bank of Australia’s Deputy Governor Man Debelle said that Australia’s rate of interest need not increase automatically with the tightening of other reserve banks.

“Simply as the policy rate in Australia did not need to decrease to the extremely low levels seen in other parts of the world, that other reserve banks increase their policy rates does not immediately imply that the policy rate here has to increase,” Debelle stated in Adelaide.

The loonie bounced off to 88.90 versus the Japanese yen, from a 3-day low of 88.45 hit at 8:15 am ET. The loonie is most likely to target resistance around the 92.00 level.

The product has actually been supplied by InstaForex Business – www.instaforex.com

Jonathon Alexander

Indonesia Likely To Hold Rates This Year Despite Weak Development Momentum

By | July 21, 2017

Bank Indonesia is most likely to keep its policy rate unchanged at least until the end of this year, as policymakers see the position as neutral, amidst weaker growth, economists at Capital Economics stated.

On Thursday, the central bank left its key rate of interest unchanged at 4.75 percent for a ninth session in a row.

“A senior BI official has characterised the policy position as neutral, which reinforces our conviction that rates will remain on hold for some time yet,” economic experts said.

The policy declaration acknowledged that development had been weaker in the second quarter than the bank had previously anticipated, financial experts observed.

Capital Economics expects that Indonesia’s growth will be around Q1’s 5.0 percent annual growth rate through this year and 2018.

“For this reason, the economy would gain from rates of interest cuts,” financial experts added.

The economy is still facing few tailwinds amidst weak incoming activity data and slow credit development, weak fiscal position and disappointing development on reform.

But a rate cut is not likely this year given the reserve bank’s concerns about inflation, economists kept in mind.

The annual headline inflation in June still reached 4.4 percent, the highest it has been because March last year and nudging the top-end of Bank Indonesia’s 3-5 percent inflation target band.

The increase in inflation was generally owned by greater prices for fuel owing to minimized government subsidies.

The rate of inflation will show short-term, policymakers are unlikely to run the risk of any damage to their track record by cutting rates while inflation remains raised, economists pointed out.

“All told, we continue to expect that the benchmark rate will be kept at 4.75 percent at least till completion of the year,” Capital Economics’ economists anticipated.

“Even more ahead, if inflation drops back as we expect in 2018 and frets about the currency exchange rate remain controlled, rate cuts could return onto the program.”

The product has actually been provided by InstaForex Business – www.instaforex.com

Jonathon Alexander

USD/JPY analysis for July 21, 2017 888011000 110888 Just recently, the USD/JPY pair has been trading downwards. As I anticipated, the rate checked the level of 111.26. Inning accordance with the 4H timespan, the price is still making lower highs and lower lows, which is a sign that sellers remain in control. Strong breakout of a rising wedge in the background is a strong technical signal for a more down move. My recommendations is to look for potential selling opportunities. The downward targets are set at the price of 111.00 and111.65. Resistance levels: R1: 111.68 R2: 112.00 R3: 112.20 Assistance levels: S1: 111.15 S2: 111.95 S3: 110.60 Trading suggestions for today: expect potential selling opportunities.The product has actually been supplied by InstaForex Company-www.instaforex.com

By | July 21, 2017

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Recently, the USD/JPY pair has been trading downwards. As I expected, the price tested the level of 111.26. According to the 4H time frame, the price is still making lower highs and lower lows, which is a sign that sellers are in control. Strong breakout of a rising wedge in the background is a strong technical signal for a further downward move. My advice is to watch for potential selling opportunities. The downward targets are set at the price of 111.00 and 111.65.

Resistance levels:

R1: 111.68

R2: 112.00

R3: 112.20

Support levels:

S1: 111.15

S2: 111.95

S3: 110.60

Trading recommendations for today: watch for potential selling opportunities.

The material has been provided by InstaForex Company – www.instaforex.com

Jonathon Alexander

EUR/USD analysis for July 21, 2017 888011000 110888 Just recently, the EUR/USD pair has actually been trading upwards. As I expected, the rate tested the level of 1.1676. According to the 15M amount of time, I discovered broken the other day’s high and an effective re-test, which is a sign that selling looks risky. My recommendations is to expect potential purchasing opportuntiies. Another indication of strength isthat RSI is declining from 50 level. The upward target is set at the price of 1.1675. Resistance levels: R1: 1.1650 R2: 1.1665 R3: 1.1675 Support levels: S1: 1.1630 S2: 1.1620 S3: 1.1610 Trading recommendations for today: watch for potential purchasing opportunities.The material has been provided by InstaForex Business-www.instaforex.com

By | July 21, 2017

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Recently, the EUR/USD pair has been trading upwards. As I expected, the price tested the level of 1.1676. According to the 15M time frame, I found broken yesterday’s high and a successful re-test, which is a sign that selling looks risky. My advice is to watch for potential buying opportuntiies. Another sign of strength is that RSI is rejecting from 50 level. The upward target is set at the price of 1.1675.

Resistance levels:

R1: 1.1650

R2: 1.1665

R3: 1.1675

Support levels:

S1: 1.1630

S2: 1.1620

S3: 1.1610

Trading recommendations for today: watch for potential buying opportunities.

The material has been provided by InstaForex Company – www.instaforex.com

Jonathon Alexander

NZD/USD Intraday technical levels and trading recommendations for July 21, 2017 888011000 110888 Daily Outlook The NZD/USD pair has been trending up within the depicted bullish channel given that January 2016. In November 2016, early signs of bullish weak point were expressed on the chart when the pair cannot tape a brand-new high above 0.7400. A bearish breakout of the lower limit of thechannel occurred in December 2016. In February 2017, the portrayed short-term downtrend was initiated in the portrayed supply zone(0.7310-0.7380).Nevertheless, a current bullish breakout above the drop line happened on May 22. Ever since, the market has been bullish as portrayed on the chart.The rate zone of 0.7150-0.7230(SUPPLY ZONE in confluence with 61.8%Fibonacci level)stood as a short-term resistance zone till a bullish breakout was expressed above 0.7230. This led to a fast bullish advance towards the next supply zone around 0.7310-0.7380 where evidentbearish rejection and a legitimate SELL opportunity can be provided if adequate bearish rejection is expressed.Currently, the NZD/USD pair stays trapped in between the rate levelsof 0.7230-0.7310 until a breakout occurs in either direction.Trade suggestions: Risky traders could have a legitimate SELL entry at retesting of the cost zone of 0.7400(ceiling of thesupply zone ). S/ L ought to be set as day-to-day candlestick closure above0.7450. Conservative traders can wait for a bearish closure listed below 0.7300 for a much better OFFER signal. T/P levels ought to be put at 0.7220, 0.7160, 0.7050.The material has actually been provided by InstaForex Company – www.instaforex.com

By | July 21, 2017

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Daily Outlook

The NZD/USD pair has been trending up within the depicted bullish channel since January 2016.

In November 2016, early signs of bullish weakness were expressed on the chart when the pair failed to record a new high above 0.7400.

A bearish breakout of the lower limit of the channel took place in December 2016.

In February 2017, the depicted short-term downtrend was initiated in the depicted supply zone (0.7310-0.7380).

However, a recent bullish breakout above the downtrend line took place on May 22. Since then, the market has been bullish as depicted on the chart.

The price zone of 0.7150-0.7230 (SUPPLY ZONE in confluence with 61.8% Fibonacci level) stood as a temporary resistance zone until a bullish breakout was expressed above 0.7230.

This resulted in a quick bullish advance towards the next supply zone around 0.7310-0.7380 where evident bearish rejection and a valid SELL opportunity can be offered if enough bearish rejection is expressed.

Currently, the NZD/USD pair remains trapped between the price levels of 0.7230 – 0.7310 until a breakout occurs in either direction.

Trade recommendations:

Risky traders could have a valid SELL entry at retesting of the price zone of 0.7400 (upper limit of the supply zone).

S/L should be set as daily candlestick closure above 0.7450.

Conservative traders can wait for a bearish closure below 0.7300 for a better SELL signal. T/P levels should be placed at 0.7220, 0.7160, 0.7050.

The material has been provided by InstaForex Company – www.instaforex.com

Jonathon Alexander

Essential Analysis of CAD/JPY for July 21, 2017 888011000 110888 CAD/JPY is presently living in a corrective volatile structure at the edge of breaking above the resistance level of 86.70. JPY has been rather weak versus CAD which is currently pulled up due to indecision in the market now. Yesterday JPY Policy Rate was released with a the same figure at -0.10% based on expectation, Trade Balance report showed a decline to 0.08 T which was expected to be unchanged at 0.12 T and All Industrial Activity report showed unfavorable figure at -0.9% which previously was at 2.3%. The the same policy rate report could not quite supply any positive influence on JPY versus CAD yesterday which led to indecision and correction the other day. Today a great amount of CAD financial occasions are going to be held including CPI report which is anticipated to be unfavorable at -0.1% which previously was positive at 0.1%, Core Retail Sales is anticipated to reveal a decrease to 0.0% from the previous value of 1.5%, Common CPI is anticipated to be hawkish which previously was at 1.3%, Mean CPI is anticipated to be hawkish which formerly was at 1.5%, Retail Sales is anticipated to reduce to 0.3% which previously was at 0.8%, Cut CPI is expected to be hawkish which previously was at 1.2% and Core CPI is expected to be hawkish too which formerly was at 0.1%. To sum up, a great quantity of financial occasion of CAD is going to be held today which is expected to generate an excellent amount of volatility in the market and leading to further gains on the CAD side. CAD has been rather hawkish in nature just recently after the Rate of interest hike which is anticipated to continue further in the coming days.Now let uslook at the technical view, the cost is presently at the edge of breaking above the resistance level of 86.70. The price has been fixing at this level because last 5 days and a breakout is anticipated to result today due to high effect CAD economic reports going to be published today. If we see an everyday close above the 86.70 today then we will be looking forward to buying with a target towards 90.00 and if the cost breaks below 86.70 with a day-to-day close then we will be eagerly anticipating selling with a target to 87.50 which is the support of dynamic level 20 EMA. The product has actually been offered by InstaForex Company-www.instaforex.com

By | July 21, 2017

CAD/JPY is currently residing in a corrective volatile structure at the edge of breaking above the resistance level of 86.70. JPY has been quite weak against CAD which is currently came to a stop due to indecision in the market now. Yesterday JPY Policy Rate was published with an unchanged figure at -0.10% as per expectation, Trade Balance report showed a decrease to 0.08T which was expected to be unchanged at 0.12T and All Industrial Activity report showed negative figure at -0.9% which previously was at 2.3%. The unchanged policy rate report could not quite provide any positive impact on JPY against CAD yesterday which resulted in indecision and correction yesterday. Today a good amount of CAD economic events are going to be held including CPI report which is expected to be negative at -0.1% which previously was positive at 0.1%, Core Retail Sales is expected to show a decrease to 0.0% from the previous value of 1.5%, Common CPI is expected to be hawkish which previously was at 1.3%, Median CPI is expected to be hawkish which previously was at 1.5%, Retail Sales is expected to decrease to 0.3% which previously was at 0.8%, Trimmed CPI is expected to be hawkish which previously was at 1.2% and Core CPI is expected to be hawkish as well which previously was at 0.1%. To sum up, a good amount of economic event of CAD is going to be held today which is expected to bring in a good amount of volatility in the market and resulting to further gains on the CAD side. CAD has been quite hawkish in nature recently after the Interest Rate hike which is expected to continue further in the coming days.

Now let us look at the technical view, the price is currently at the edge of breaking above the resistance level of 86.70. The price has been correcting at this level since last 5 days and a breakout is expected to result today due to high impact CAD economic reports going to be published today. If we see a daily close above the 86.70 today then we will be looking forward to buying with a target towards 90.00 and if the price breaks below 86.70 with a daily close then we will be looking forward to selling with a target towards 87.50 which is the support of dynamic level 20 EMA.

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The material has been provided by InstaForex Company – www.instaforex.com

Jonathon Alexander

Technical analysis of EUR/USD for July 21, 2017 888011000 110888 Today, when the Euro Zone and thet United States marketopen, no Economic Data willbe launched, so, amid the reports, EUR/USD will relocate a low to mediumvolatility throughout this day.TODAY’S TECHNICALLEVEL: Breakout BUYLevel: 1.1685.Strong Resistance:1.1678. Original Resistance: 1.1667. Inner Sell Location: 1.1656.Target Inner Location: 1.1628.Inner Buy Area: 1.1600. Initial Assistance: 1.1589. Strong Assistance: 1.1578. Breakout OFFER Level: 1.1571. Disclaimer: Trading Forex(foreign exchange)on margin brings a high level of threat, and might not appropriate for all investors. The high degree of take advantage of can work against you along with for you. Before choosing to buy forex you need to thoroughly consider your financial investment goals, level of experience, and threat appetite. The possibility exists that you might sustain a loss of some or all of your preliminary investment and for that reason you must not invest money that you can not manage to lose. You should understand all the threats related to foreign exchange trading, and consult from an independent monetary consultant if you have any doubts.The product has been provided by InstaForex Business-www.instaforex.com

By | July 21, 2017

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Today, when the Euro Zone and thet US market open, no Economic Data will be released, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY’S TECHNICAL LEVEL:

Breakout BUY Level: 1.1685.

Strong Resistance:1.1678.

Original Resistance: 1.1667.

Inner Sell Area: 1.1656.

Target Inner Area: 1.1628.

Inner Buy Area: 1.1600.

Original Support: 1.1589.

Strong Support: 1.1578.

Breakout SELL Level: 1.1571.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

The material has been provided by InstaForex Company – www.instaforex.com

Jonathon Alexander

Fundamental Analysis of NZD/USD for July 21, 2017 888011000 110888 NZD/USD has remained in a non-volatile bullish trend just recently which is anticipated to continue even more until 0.7500 resistance level is reached in the coming days. Today NZD Visitor Arrivals report revealed an increase to 5.1% which previously was -1.4%, as tourism plays a significant role in the New Zealand economy the report has a direct impact on the country’s GDP leading to great effect on the currency growth. Along with it, NZD Charge card Costs report is likewise released today with a growth to 8.3% which formerly was at 7.6%. On the USD side, the positive joblessness claims report yesterday which was released at 233k which was anticipated to be at 245k from the previous value of 248k, USD could not quite control the growth of the NZD which indicates the strength of NZD to persist further in the coming days. Today there are no financial occasions on the USD side which might lead to more gain on the NZD in the future.Now let us take a look atthe technical view, the cost has been quite non-volatile recently with the bullish momentum which might not properly breach the dynamic level of 20 EMA. As the rate stays above the 20 EMA further bullish pressure towards 0.7500 resistance level is anticipated in the coming days. The material has actually been offered by InstaForex Business-www.instaforex.com

By | July 21, 2017

NZD/USD has been in a non-volatile bullish trend recently which is expected to continue further until 0.7500 resistance level is reached in the coming days. Today NZD Visitor Arrivals report showed an increase to 5.1% which previously was -1.4%, as tourism plays a significant role in the New Zealand economy the report has a direct impact on the country’s GDP resulting to good impact on the currency growth. Along with it, NZD Credit Card Spending report is also published today with a growth to 8.3% which previously was at 7.6%. On the USD side, the positive unemployment claims report yesterday which was published at 233k which was expected to be at 245k from the previous value of 248k, USD could not quite dominate the growth of the NZD which signals the strength of NZD to persist further in the coming days. Today there are no economic events on the USD side which might lead to further gain on the NZD in the future.

Now let us look at the technical view, the price has been quite non-volatile recently with the bullish momentum which could not properly violate the dynamic level of 20 EMA. As the price remains above the 20 EMA further bullish pressure towards 0.7500 resistance level is expected in the coming days.

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The material has been provided by InstaForex Company – www.instaforex.com

Jonathon Alexander

VALE: Shares In Brazil Plummet Regardless of Record Iron Ore Production

By | July 20, 2017

Vale’s shares fell by more than 3% a few hours ahead of the Brazilian stock exchange closing and lead Ibovespa lower despite the miner’s report showing a record iron ore production in the 2nd quarter of this year.

Market analysts spoken with by CMA News Company expected the business to launch an increase in output for the 2nd quarter of this year and stated that Vale’s stock price movement was a result of lower iron ore costs abroad. They also expect the miner to release lower revenues next week.

Vale’s favored shares (VALE5) fell 3.17% to R$ 27.12 each, while the common shares (VALE3) were down 3.37%, to R$ 28.89 each. The shares of Bradespar (BRAP4), Vale’s investor, were also down 3.61%, to R$ 21.10 each.

“Iron ore has fallen sharply, by 3.12% on the spot market, in Qingdao port, and also decreased in the Chinese futures market. Vale’s shares are very sensitive to the rate of the ore,” said Guide Investimentos strategist Luis Gustavo Pereira.

The product has been offered by InstaForex Company – www.instaforex.com

Jonathon Alexander

VALE: Iron Ore Production In Q2 Strikes New Record

By | July 20, 2017

Vale’s iron ore production increased 5.8% on year in the second quarter, reaching 91.849 million tons, a new record for the company. Development in the S11D mining complex activities, in Vale’s Northern System, enhanced the output.

Inning accordance with the Brazilian miner, the Northern System reached a record output of 41.5 million loads in the quarter, 13.7% greater than in the same period in 2015. Pellet production grew by 21.5%, to 12.215 million lots, and coal output more than doubled, to 3.037 million heaps. Nickel production fell by 16.1%, to 65.9 thousand lots, and copper output dropped 4.4%, to 102.7 thousand loads.

Coal production in Mozambique likewise hit a record and as twice the quantity recorded in the 2nd quarter of 2016.

Vale reiterated that iron ore production in 2017 need to be close to the bottom of the guidance range – 360 million to 380 million tons. The miner, however, reduced its expectation for nickel output this year to 295,000 loads, showing lower-than-planned production at Thompson, New Caledonia, and Indonesia.

The copper production forecast was revised to 447,000 lots in 2017, showing the impact of unintended upkeep at Sudbury mines, lower third-party copper deliveries and greater irregularity in Salobo’s material.

The product has been provided by InstaForex Company – www.instaforex.com

Jonathon Alexander