Morning Update

Friday August 12th, 2022

The US$ moves higher, oil prices up 0.30% as the equity markets trending higher and yield are slightly lower. After hitting a 6-week low, the market is closing out the week with some USD buying. Market coming to grip that while the US CPI did show a reduction in inflation it’s only 1-month worth of data. Michigan Consumer Sentiment Index to be released this morning with expectation of an improvement. In other news. ?Kazakhstan to start oil sales via Azeri pipeline to bypass Russia. The drought across Europe is drying up rivers, killing fish and shriveling crops. The?currency markets. After an eventful week, the APAC currency market is taking a breather. The USD/JPY is bouncing back from it’s one-week low. The divergence between Fed and BoJ policies if offering a tailwind to the greenback.

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Current level US$ Index??????????????105.326????????Up 0.22%

The USD/CAD hovers at the June low for the third consecutive day. No economic data in Canada to be released today while the US will release the Michigan Consumer index. The 1.2750 area is crucial for the USD/CAD and break could lead to a swift move to 1.2680 area. Support lowers to 1.2719 while resistance at 1.2862.

Current level US$/C$???????????????????1.2766????????????Up 0.04%

Eurozone Industrial Production rises 0.7% MoM in June, beating estimate. German Economy Ministry expects a considerably worse economic outlook for the second half of 2022 as a results of reduced gas deliveries, energy prices and supply chain issues. Support settles to 1.0275 while resistance moves to 1.0320.

Current level EUR/US$????????????????1.0290??????????Down 0.26%%

EUR/GBP continues to trend higher nearing the 0.8500 level. The recent better than expected UK data has been overshadowed by the BoE bleak outlook. While the just released upbeat Eurozone Industrial production provide some fresh buying. Support raises to 0.8460 (1.1820) while resistance raises to .8540 (1.1709).

Current level EUR/GBP????0.8490 (1.1775)????????Up 0.40%

The GBP/USD pair turns lower for the second successive day on Friday and moves further away from the weekly high. The market still focusing on the bleak outlook from the BoE rejecting any positive news received from macro-economic data. Support resets at 1.2095 while resistance resets at 1.2306.

Current level GBP/US$????????????????1.2124???????????Down 0.70%

Other Ccy levels vs C$ - EURCAD 1.3144?GBPCAD 1.5496?AUDCAD .9058 CADCHF .7379?CADJPY 104.40?CADTHB 27.66?CADCNY 5.2754?CADNOK 7.4638?CADSEK 7.9447?CADDKK 5.6569?CADZAR 12.7255

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Other Ccy levels vs US$ - JPY 133.63 CHF.9428 AUD.70.88?NZD .6425?CNY 6.7419?MXN 19.9235?INR 79.6770?PLN 4.5471 CZK 23.671?ZAR 16.2562?ILS 3.2373?AED 3.6727?KWD 0.30642

Other Major X levels – EURCHF .9702?EURJPY 137.49 EURSEK 10.4434 EURNOK 9.8156?GBPCHF 1.1438?EURAUD 1.4511 GBPAUD 1.7106 AUDCHF .6686?AUDJPY 94.72?CHFJPY 141.54