News, Trends, & Analytics 01.07.2020

Today, the focus is on the UK GDP, Powell and Mnuchin’s testimony before the US House of Representatives, as well as the Hong Kong National Security Law.

 

News

China passed a national security law for Hong Kong. Affects Hang Seng


The Bank of England’s chief economist Andy Haldane said there is a more positive trend in the country’s economy than it was in May. Affects GBP


UK GDP fell by -2.2% against the forecast of -2%. Affects FTSE 100


There is a sharp jump in consumer inflation in the European Union. Affects EUR


Fed Chair and the US Treasury Secretary testified before the House of Representatives to discuss the measures taken to provide support. Affects USD

 

Calendar

12:15 GMT

The ADP National Employment report will be published. An increase of 3 million people is expected. If the real data is lower, USD may weaken.


14:00 GMT

The US manufacturing purchasing managers index will be released. It is expected to come in at 49.5 points. Higher data will positively affect USD.


14:30 GMT

The US releases a report on crude inventories. A slight decrease of 950 thousand barrels is expected. If the indicator is above zero, Brent may decline.


18:00 GMT

The FOMC meeting minutes will be published. This information can have a strong impact on the market.

 

Technical Analysis

Hang seng

China has passed national security law for Hong Kong, which was condemned by Western countries, including the EU and the United States. The law is not aimed at fighting democratically-minded protesters who clashed with police last year. Despite the fact that Hong Kong’s leader Carey Lam said that the normative act would not affect the autonomy of the region, the Hong Kong opposition understand the gravity of what has happened.

It is more likely that the asset will continue to decline, which will create conditions for a series of profitable short trades. The target of the movement down may be the level of 22600.

EUR / USD

The boundaries of the downward channel are clearly visible on the chart. The asset might be moving towards the downward support level at 1,10000.

EUR/CAD

After a sharp reversal from the resistance level of 1.54200, the quotes may fall to the nearest support level at 1.50750.

 

EUR/CAD on this day in history

  • Since 2000, July 1st has been a trading day 12 times.
  • On 58% of those days, the asset finished trading with growth.
  • The maximum strengthening range was 1.02%.
  • The downward trend was limited to 0.31%.

Risk warning:

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