USD/CHF: the instrument is waiting for new signals
The US currency is trading slightly higher in pair with the Swiss franc, reaching the level of 0.9665. Traders are in no hurry to increase transaction activity due to the weak economic calendar since the beginning of the week.
The positive trend is due to the decisions of the Swiss regulator to tighten monetary policy, under which the interest rate was immediately increased by 50 basis points to the target of -0.25%, which has not been since 2007. According to the comments of officials, the measures taken are designed to keep the further growth of the Swiss franc and slow down the growth of inflation, which has exceeded the target level of 2%, being at around 2.4%. At the same time, the Government has not ruled out building up decisive measures in the medium term. According to the expectations updated the day before, the Swiss National Bank forecasts a new inflation rate at 2.8%, which will decrease to 1.9% in 2023, and in 2024 it will fall to 1.6%. Earlier, the national regulator expected 2.1%, 0.9% and 0.9%, respectively.
- Resistance levels: 0.9700, 0.9762, 0.9847, 0.9900.
- Support levels: 0.9618, 0.9540, 0.9459, 0.9400.
USD/CAD: downward corrective momentum
During Asian trading, the USD/CAD instrument shows an active decline, revealing the potential of the downward momentum that began with the onset of the week. At the time of writing, the asset reached 1.2950, updating the local minimum of June 16.
The withdrawal of market participants on Tuesday is focused around the publications of the Canadian statistics unit. It is expected to release data on the index of the value of residential real estate on primary demand, which is projected to strengthen by 0.8% against an increase of 0.3% last month. Confirmed information about the release of April data on sales activity, which may show an increase of 0.8% after a decline to zero activity in March. On Wednesday, investors will expect key statistics on inflation data in May. Current market expectations allow for an increase in the growth rate to 1.1% and 7.5% from the previous figures of 0.6% and 6.8%, respectively.
- Resistance levels: 1.3000, 1.3050, 1.3100, 1.3150.
- Support levels: 1.2950, 1.2900, 1.2850, 1.2800.
Oil Market Overview
Quotes of "black gold" of the benchmark Brent brand are trading with restrained growth, restoring the losses of last week's trading sessions, during which the asset reached local lows from May 24.
The published statistics, which confirmed the growth of the import volume of petroleum products and oil from the PRC, provide strong support for raw materials. According to a report published by the General Customs Administration, the Russian Federation supplies oil to China by sea and via the Eastern Siberia–Pacific Ocean pipeline. The May volume of supplies reached 1.98 million barrels in daily terms, updating the absolute record, exceeding the April figure by 25%, while liquefied natural gas was fixed at 400 thousand tons, increasing 56% compared to May 2021. Experts note that the increase in supply volumes is taking place against the background of the discount policy adopted by the Russian authorities due to the economic restrictions of Western countries against the background of the military invasion of Ukraine.
- Resistance levels: 114.09, 116.00, 120.00, 123.24.
- Support levels: 112.00, 109.00, 106.00, 102.57.
Gold Prices
The value of the precious metal is moving within the framework of consolidation, testing the 1840.00 mark, while waiting for new signals for further growth. The asset continues to be supported by the risks of slowing global GDP growth due to the active strengthening of inflation in emerging economies. The geopolitical crisis caused by Russia's military invasion of Ukraine is far from being resolved diplomatically, meanwhile, most countries are looking for ways to combat rising commodity prices due to the rising cost of energy. The problem that has arisen levels all attempts to restore the global economy after the recession due to the global coronavirus pandemic. Meanwhile, the level of demand for gold is limited due to the adoption of widespread tightening of monetary policy by regulators of the leading economies of the world. The asset does not give holders an interest rate of return, which forces investors to more often consider the US currency as a safe haven asset. According to experts' forecasts, the US Federal Reserve will continue to tighten monetary parameters in July, increasing the key indicator at a record pace of 75 basis points. The policy of the "hawks" will also soon be supported by the ECB.
- Support levels: 1807.0, 1752.0.
- Resistance levels: 1848.0, 1895.0.