USD/JPY: Japanese regulator will continue to buy bonds
The Japanese currency is making efforts to maintain a correction against the US dollar on the regulator's decision to revise monetary parameters. The instrument is trading at 138.18.
Adjustments to the interest rate left in the negative zone of -0.10% will not be able to affect. However, the regulator's officials decided to change the procedure for buying treasury securities. Thus, the volume of bond purchases will continue without a ceiling, but the redemption of bonds with a fixed rate of 0.25% will take place on a daily basis on weekdays. Meanwhile, the Central Bank of Japan expressed a desire to acquire shares of ETFs (exchange-traded investment funds) and real estate trusts in the amount of 12 trillion. ¥ and 180 billion . ¥ respectively. In addition, the repurchase process for corporate bonds will continue within the amount of 3 trillion. ¥. Summarizing, we can confidently assert the trend of volatility in the USD/JPY trading instrument, which will only intensify.
- Support levels: 136.70, 134.20.
- Resistance levels: 139.00, 141.00.
GBP/USD: inflation pressure in Britain is updating the record
"The Briton" is developing a corrective impulse by trading with the US currency thanks to the release of statistics from the ONS (Office of National Statistics of Great Britain). The GBP/USD instrument is testing the level of 1.1998.
As follows from the reports for June, consumer prices managed to strengthen by 0.8% against the previous period, which allowed the annual indicator to grow to 9.4%, becoming another updated record. The position of the PPI (purchasing price index for production) increased by 1.8% on a monthly basis, which made it possible to grow to 24.0% on an annual basis against the previous level of 22.4% in May. Economists note the low efficiency of the instruments used by the Bank of England to combat inflation, and there is no longer any doubt about further strengthening of inflation above the 10% mark by the end of the year. Skepticism was also added to the analysts by the report on the activity of cost correction in the real estate market, which shows an increase to 12.8% in annual value – an absolute record of the entire history of observations.
- Support levels: 1.1815, 1.1540.
- Resistance levels: 1.2150, 1.2627.
Silver Prices
The price of silver remains at the downward dynamics, testing the next threshold of decline of 18.50.
To review the full situation on the sites, it is worth taking into account statistics on the level of demand for positions in the metal group on the commodity exchange. As follows from the latest report of the CFTC (US Commodity Futures Trading Commission), new positions in silver have an unprecedented low attractiveness to investors, I risk being in a negative zone by the end of July, which has not been observed in recent years. The last time the asset was in this position was in June 2019, and the cost of silver was 15.00. According to statistical data, the indicator for net speculative positions in silver last week reached 3.2 thousand.
- Support levels: 18.40, 16.81.
- Resistance levels: 19.30, 20.63.
The cost of oil
The price of Brent grade "black gold" was able to gain a foothold in the middle of the Bollinger indicator lines at 108.00, then the advantage was intercepted by the "bears" and the asset moved to a decline.
In the medium term, the instrument will remain under pressure from a number of factors, continuing to develop downward dynamics, and the long-term picture looks more positive. Falling volumes of oil transportation from Russia to European markets due to the increased pressure of sanctions approved earlier against the background of Russia's military special operation against Ukraine, and the lack of will on the part of the OPEC+ cartel to increase oil production may lead to a violation of the supply-demand balance in the energy markets.
- Resistance levels: 108.00, 112.50, 115.62.
- Support levels: 103.12, 100.00, 96.88.