USD/JPY: the yen is trying to get out of pressure
The USD/JPY trading instrument shows an uptrend within the current week, testing the 135.30 mark in the present, because the Japanese currency has come under pressure due to ambiguous statistics published in Japan.
According to publications, exports increased by 19.0%, exceeding expectations of 18.2%, imports increased by 47.2%, with an expected 45.7%, leading to an increase in the trade balance deficit to the level of 1.4368 trillion yen. The increase in the shipment of goods was due to the supply of cars to the United States and China, and imports strengthened due to the increase in the cost of energy. The level of orders in the mechanical engineering segment, which is a key area for investment, increased by 0.9%, recovering losses in June, however, it did not reach the expected figures of 1.3%. In general, statistics show the unstable pace of economic recovery, against which the Central Bank of Japan receives additional arguments to maintain the current soft monetary policy.
- Resistance levels: 136.00, 137.50, 139.06.
- Support levels: 132.80, 131.25, 129.68.
Overview of the S&P 500 index
The key US stock indicator S&P 500 shows an upward trend, testing the level of 4261.0.
Earlier, investors positively assessed the publication of financial statements of the largest US retail chain Walmart Inc., which increased the profitability of the stock to $1.77 from the previous figure of $1.30 last quarter. The company's profitability increased to $152.86 billion against $141.57 billion in the previous quarter. According to the report, Home Depot Inc., also released the day before, the revenue level increased to $43.79 billion against $38.91 billion last quarter, while the profitability of the stock reached a record $5.05, which is higher than $4.09 earlier in the first quarter. Experts note the continuation of the correction of US stock indicators, the pace of dynamics of which will depend on corporate reports in the future. Meanwhile, US Federal Reserve officials have confirmed the continuation of a tough course on changing monetary parameters until the target indicator of "sufficiency" is reached, which has not yet happened in the present.
- Support levels: 4182.0, 3900.0.
- Resistance levels: 4330.0, 4631.0.
Gold Prices
The quotes of the banking metal are developing a downward trend, trading at around 1764.00 due to the increase in positions of the US currency. The US dollar rose to 106.600 from the previous 105.300 on the USD Index for a number of reasons, including confirmation from the US Federal Reserve to increase the interest rate in the future. According to the results of the FOMC (Federal Open Market Committee) meeting, the minutes of which were read by investors, the regulator's intentions to raise the interest rate by at least 0.50% during the summit in September to reduce the rate of rising inflation were clearly expressed. An additional negative factor for gold was the report of industrial production in China, which reached 3.8% against 3.9% last month and below economists' expectations of 4.6%, confirming traders' fears of disruptions in the economic recovery in one of the key countries producing the precious metal.
- Resistance levels: 1782.0, 1847.0.
- Support levels: 1753.0, 1696.0.
Oil Market Overview
The price of Brent grade "black gold" is at the 95.00 mark, having a growth potential at the output of data from the USA.
Thus, according to the weekly report on energy reserves from API (American Petroleum Institute), the data showed positive dynamics due to a decrease of 0.448 million barrels, which is higher than expectations of a decrease of 0.117 million barrels, and gasoline showed a decrease of 4.5 million barrels. Investors were also pleased with the publication from the EIA (Energy Information Administration of the US Department of Energy), which reflected a reduction of 7,056 million barrels, contrary to the forecast of 275.0 thousand barrels, which made it possible for the instrument to increase its position in the market.
- Resistance levels: 101.95, 110.00.
- Support levels: 91.13, 86.37.