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Market News and Charts for July 12, 2021

Hey traders! Below are the latest forex chart updates for Monday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!

USD/ILS

The USDILS pair is headed towards its 9-month high at 3.41837 in sessions with a parabolic move. The widening trade deficit in Israel is weighing down on the shekels. In June, the net exports came in at -3,129.8 million. This was the lowest recorded data in the past three (3) years. The total value of exports is at 4,530.5 million which was a decline from a revised May figure of 4,638.5 million. On the other hand, imported products surged to 7,660.3 million. The number was an all-time high record for the country. The impact of recent military conflict along with the change in leadership will negatively impact the recovery of Tel Aviv. As for the new government, the finance ministry presented the first budget in more than two (2) years with a focus on artificial intelligence. In other news, Bank of Israel chief Amir Yaron plans to alter the inflation targeting scheme amid changes in the economic landscape. Currently, the central bank has an annual target between 1.0% to 3.0%. FinanceBrokerage - Market News: USD/ILS Chart

USD/SEK

The pair will continue with its bullish momentum and retest a key resistance at 0.89500. The US initial jobless claims report came in at 373,000 which is a slight increase from the previous week’s 371,000 result. While missing the 350,000 estimates, the report is still considered stable. As for the continuing jobless claims, it dropped to a pandemic low of 3.40 million. The numbers suggest improving labor data which could trigger a hawkish sentiment among the US policymakers in the Federal Reserve. The crude inventories report in the United States also continues to incur a deficit. On Thursday’s report, July 08, the Energy Information Administration (EIA) published a decline of -6.866 million barrels in stockpiles. This represents the 7th week of negative numbers for the oil report. As for the American Petroleum Institute (API), the inventories fell -7.983 million barrels last week. Analysts are also looking forward to the banking sector to open the Q2 earnings season. FinanceBrokerage - Market News: USD/SEK Chart

USD/ZAR

The pair will break out from downtrend resistance lines to recoup some of its losses in the coming days. South Africa is edging closer towards a full-blown civil war. This was after former president Jacob Zuma was imprisoned for corruption scandals and sentenced to 15 months in prison. The unrest in the country’s economic hub, Johannesburg, could derail the government’s effort to restore South Africa to a pre-pandemic level. The wake of the violence has already dragged the rand lower against the greenback of at least 2.0%. Chief economists from leading institutions warned of the consequences of a continued riot in the economy. The rallies are anticipated to take a toll on South Africa’s third-quarter GDP until the end of the fiscal year. Meanwhile, the coronavirus cases are still at the peak of the third wave. And the more aggressive Delta variant threatens an extended peak and lockdown which will further result in business losses and low economic productivity. FinanceBrokerage - Market News: USD/ZAR Chart

USD/RUB

The pair will reverse to the downside after failing to break out of the downtrend channel resistance line. The Russian government made several announcements that could change the course of the ruble. First, the Economy Ministry revised its 2021 economic outlook to 3.8% from the previous forecast of 2.9%. The ministry cited the increased oil prices as one of the major contributors to the improved readings. The oil commodity accounts for 60% of Moscow’s exports and 30% of the country’s gross domestic product (GDP). As a result, Russian Finance Minister Anton Siluanov said that stimulus creates high inflation and poses threat to the global economy. The comment is taken as Russia’s stance on its economic policies. For the year, the Russian central bank had raised its benchmark interest rate three (3) times. From 4.25% in February, Moscow in total added 125-basis points to 5.50%. Analysts expect further hikes until the pre-pandemic 6.0% level is reached.



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