USD/CHF: the U.S. currency updated the January low from 2015
The USD/CHF trading instrument is developing downward dynamics, reaching the level of 0.8575 continuing its decline, updating the minimum of January 2015.
The US dollar was under pressure during the current week on the background of published American macroeconomic data. As a reminder, the reporting reflected a decline in consumer inflation to 3.0% from the previous 4.0%, beating analysts' expectations of 3.1%, while the core reading fell to 4.8% from 5.3% year-on-year, but added 0.2% month-on-month to the previous 0.4% rise. Meanwhile, investors estimated manufacturing inflation, released a day earlier, reached a reading of 0.1% from 0.9% in the annualized reading, with experts expecting a decline to 0.4%, and for the month managed to add 0.1 to the previous month's negative 0.4%, with markets forecasting only 0.2%. Such a weakened inflation gives an opportunity for officials of the U.S. Federal Reserve System to announce the end of the cycle of correction of monetary stimulus. In turn, analysts continue to expect the cost of borrowing to strengthen by 0.25% at the end of the meeting in July.
- Resistance levels: 0.8650, 0.8700, 0.8756, 0.8800.
- Support levels: 0.8568, 0.8500, 0.8450, 0.8400.
USD/CAD: Central Bank of Canada increased the cost of borrowing to the highest level since 2001
During the morning session, the USD/CAD asset is testing the strong support level of 1.3100, having updated the low from September 2022.
This week, the Canadian regulator, as predicted, decided to raise interest rates by 0.25%, reaching the target of 5.0%, thus updating the maximum since 2001, and the accompanying comments indicated that such a move became a necessity amid the mixed prospects for global GDP and high inflation in the world. According to officials, contrary to the decline in national consumer inflation for May to 3.4%, in the annualized value to the previous 4.4%, and the negative dynamics of the service sector is due to high spending and low unemployment. This situation was the reason to revise the forecasts, having decided that consumer prices will remain at 3.0% in 2024 and decline to the target of 2.0% by Q3 2024. Financial authorities in Canada allow further tightening of monetary stimulus, if necessary based on the economic situation in the country and the world.
- Resistance levels: 1.3150, 1.3200, 1.3250, 1.3300.
- Support levels: 1.3100, 1.3050, 1.3000, 1.2950.
GBP/USD: the growth peak has not been passed yet
The GBP/USD currency pair is moving thanks to a strong upward momentum, updating the yearly high at 1.3140.
The positive dynamics is due to the May statistics on the United Kingdom GDP volume, according to which the value decreased by 0.1% for the month against estimates of 0.3% and by 0.4% for the year, while 0.7% was expected. Investors believe that an economic recession will be avoided, while the inflation rate remains the highest among the G7 members and the national regulator regularly strengthens monetary parameters, which increases the burden on households.
- Resistance levels: 1.3183, 1.3305, 1.3427.
- Support levels: 1.2939, 1.2817.
Cryptocurrency market review
At the end of the current week, the market of electronic assets was under the influence of "bulls", and the cost of BTC holds in the area of 31300.00, adding 3.6%, ETH can be purchased at the price of 2010.00, after an increase in price by 7.5%, USDT is quoted at 1.0010, gaining 0.04%, XRP soared to 0.7700, strengthening by 65.5%. The total market segment capitalization rose to $1.239 billion, with BTC accounting for 48.4% of the share.
Investors expect the regulatory pressure factor to intensify in the short term. Unsuccessful results of the lawsuit against Ripple, most likely, will not stop the vector of tightening parameters on the conditions for the continuation of services provided by digital companies, which is being rapidly promoted primarily by the SEC. For example, pressure continues to be exerted by European and U.S. regulators on the world's largest trading platform, Binance, whose subsidiaries are being actively stripped of their previously issued licenses after allegations of regional law violations and fraudulent activities against the broker. The situation has worsened following the decision of a number of key management employees to leave the company, which was only exacerbated by a decline in the overall volume of trading transactions on the platform.