GBP/USD: investors are waiting for the results of the US Federal Reserve meeting
The British currency keeps moving in corrective dynamics against the US dollar, trying to stay above the minimum value updated in mid-June, testing the 1.2059 mark.
The current situation is not tied to the strengthening of the British pound, leaving the global picture rather negative. Thus, a representative of the Reach publishing house, which owns the Daily Express and Daily Mirror editorial offices, announced a forced step to reduce the number of pages in all printed publications due to a record increase in paper prices, which is a causal link between the growth of national inflation and the coming energy crisis. As follows from The Guardian reports, the share of newsprint purchase costs increased by 65%, which is why in Q2 the number of pages in the print edition in popular newspapers decreased by 6.0%, becoming a minimum comparable to the critical stage of the COVID-19 pandemic.
- Support levels: 1.1992, 1.1762.
- Resistance levels: 1.2107, 1.2355.
USD/JPY: Japanese regulator increases the volume of buying bonds
The Japanese currency is once again trying to undergo a correction paired with the US currency after the release of data from the Central Bank of Japan on the results of the meeting, where officials explained the details of the current monetary parameters. The USD/JPY pair is testing the mark of 136.95.
According to preliminary reports, the participants of the meeting of the regulator decided to keep the key indicator in a negative key of -0.10% and confirmed their intentions to continue the program of buying treasury bonds on the market, refusing to fix the upper level, allowing them to fix their yield at 0.00%. In particular, 10-year bonds will be purchased by the bank throughout all working days at a fixed rate of 0.25% without limiting the amount of transactions. Simply put, the regulator will continue to provide over-issuance, signs of which can be observed right now, and which may cause the yen to grow in the local corridor in the global basket of world currencies.
- Support levels: 136.05, 133.78.
- Resistance levels: 137.77, 139.39.
EUR/USD: the long-term advantage remains with the "bears"
Recently, the EUR/USD trading instrument continued to move quotes, retreating from the average lines of the Bollinger band, testing the 1.0130 level in the present.
The euro continues to be under pressure due to the joint agreement of the heads of the ministries of energy affairs of the EU countries to reduce the consumption of "blue fuel" by 15%, against the background of falling supplies from the Russian Federation. At this stage, the parties agree voluntarily and do not apply to some European countries, but even the current situation already has the prospect of coming to disastrous results, primarily in the industrial sector of Germany, bringing the country's national economy into recession, where the situation is already in a negative state, and recent data publications only confirm these facts.
- Resistance levels: 1.0253, 1.0376, 1.0500.
- Support levels: 1.0131, 1.0000, 0.9887.
The cost of WTI crude oil
Quotes of WTI grade "black gold" were able to stabilize during Wednesday's trading session, being at around 98.00, because the expected risks of a likely decline in demand have lost relevance after the US decision to reduce oil reserves.
According to API (American Petroleum Institute) data, the correction of the indicator was -4.037 million barrels, which turned out to be much less than experts' expectations. But investors remain concerned about possible pressure on the asset when the US Federal Reserve decides to raise the interest rate, whose meeting is announced for today. The active strengthening of the currency will cause an increase in the cost of goods denominated in the US dollar for foreign consumers.
- Resistance levels: 103.55, 105.76.
- Support levels: 95.00, 85.00.