Friday July 29th Morning Update

Friday July 29th, 2022

The US$ hedges lower, oil, equity and US yields are all moving higher. The US$ is nearing it’s 3-week low driven by Powell’s comments suggesting that there maybe one other large rate hike – the Fed is moving towards a fine-tunning process. In other news.?Chinese President Xi Jinping warned U.S. President Joe Biden against interfering in Taiwan. San Francisco declares an emergency to help the city deal with monkeypox spread. The?currency markets.?China indicates no stimulus coming; government to maintain 'zero-COVID' policies. China signals it could miss economic growth target. The USD is losing ground against the JPY (-0.77%), THB (-0.60%), IDR (-0.49%), INR (-0.69%) and PHP (-1.11%)

Current level US$ Index??????????????106.062????????Down 0.27%

?USD/CAD founds some support in the low 1.2800 early in the Asian session. Prior to the recent move up, the USD/CAD had remained in a range of 1.2400-1.2800 – making this an important level. ?The Fed’s preferred inflation gauge, namely the Core Personal Consumption Expenditure (PCE) will be released later this morning. Support reset at 1.2786 while resistance hedges lower to a level of 1.2889

?Current level US$/C$???????????????????1.2810????????????Down 0.10%

The Eurozone economy expanded by 0.7% in the three months ending in June, beating 0.2% expected and 0.6% previous, the preliminary release showed on Friday. The better-than-expected data wasn’t enough to propel the Euro higher as market now focuses on US Dore COE expenditure. Support remains to 1.0160, while resistance is at 1.0280.

Current level EUR/US$????????????????1.0211??????????Up 0.14%

?After a few days of strong EUR/GBP selling – the market bounced back as profit taker prepare for the weekend. While the factors for the move lower still exist, market remains cautions as a negative Brexit comment could send the pair higher. Support raises at .8365 (1.1954) while resistance lowers at .8460 (1.1820).

Current level EUR/GBP????0.8397 (1.1902)????????Up 0.27%

GBP/USD climbs to a one-month high on Friday amid the prevalent USD selling bias. Expectations for gradual Fed rate hikes and sliding US bond yields undermine the USD. General risk-on strategy is exerting pressure on the USD. Support moves higher to 1.2123 while resistance resets at 1.2211.

?Current level GBP/US$????????????????1.2170????????????Unchanged

?Other Ccy levels vs C$ - EURCAD 1.3117?GBPCAD 1.5598?AUDCAD .8968?CADCHF .7426?CADJPY 103.76?CADTHB 28.24?CADCNY 5.2536?CADNOK 7.5396?CADSEK 7.9150?CADDKK 5.6722?CADZAR 12.8682

?Other Ccy levels vs US$ - JPY 133.19?CHF.9522?AUD.6990?NZD .6294?CNY 6.7374?MXN 20.2630?INR 79.2050?PLN 4.6260?CZK 24.039?ZAR 16.5144?ILS 3.3965?AED 3.6729?KWD 0.30646

?Other Major X levels – EURCHF .9742?EURJPY 136.27?EURSEK 10.3880 EURNOK 9.8920?GBPCHF 1.1583?EURAUD 1.4635?GBPAUD 1.7397?AUDCHF .6657?AUDJPY 93.11?CHFJPY 139.51