Indices Trends
- NASDAQ 100 trending higher (Daily Chart); current price 7978.75; price is now trading above the 7910.75 key resistance; price is above its 4,9 and 18 period moving averages; upside price extensions spotted at 8790 and 8640 provided 7910.75 can be established as new key support; technology company Amazon price target has been raised according to financial website Benzinga from $2,100 to $2,300 could be add some upside momentum for the NASDAQ 100;
Commodities Trends
- Wheat; Corn and Soybeans prices higher over the last 5 days on forecast that dry weather may stress crops in the US and raise concerns over reduced production helping to support higher prices; Wheat prices +3.5%; Corn +4.5%; and Soybeans +4.10% last 5 days;
- Corn prices on an uptrend (Daily Chart); current price 450; prices down -0.6% for the session however price remains above its short, medium and longer term moving averages; corn prices seen supported higher on hot and dry US weather which has followed the recent heavy rains adding to delays in plating new crops;
- Sugar in a bearish downtrend on concerns of oversupplies; and weaker demand signs; current price 12.03;
FX Trends
- GBP/ZAR current price 17.3853; downtrend; price is -01% lower today; current price is trading below its 200, 500 and 100 period moving averages; however RSI analysis indicates that price is oversold; South Africa forecasted to cut interest rates on Thursday by-0.75%;
- EUR/GBP uptrend in place; current price 0.89872 trading above its 4,9 and 18 period moving averages; GBP under pressure on Brexit uncertainty and what the Bank of England next move will be after Brexit; raise rates, cut rates or do nothing; upside resistance seen at 0.908; support 0.8870;
Global Market Insights:
- Risk assets benefit from lower interest rate prospects; US stocks closed last week at record highs; US Dow Jones jumps +535 points last 5 days while the US dollar index falls -0.6% last 5 days; investors continue to bet on US interest rate cut decision expected to be announced on Wednesday 31st of July (last day of this month);
- China Industrial Production and Retail Sales beat estimates;signs that China’s economy is stabilizing may help to keep global risk assets in play;
- Thursday - South African Reserve Bank forecast to cut interest rates; forecast to cut interest rates by -0.75%; South African stocks may find support with lower interest rates;
- Investment Bank Goldman Sachs Group Inc. reports earnings Tuesday the 16th of July at 14:30 EST; forecast to earn $4.932 per share on $8.898 billion in sales for the last 3 months;
Upcoming Earnings
- This week is busy for stock traders; corporate earnings from Goldman Sachs; Svenska Handelsbanken; Swedbank; Ericson; Ebay; Nordea Bank; Volvo; and Microsoft;
Source: FXGM / Bloomberg