Daily Market Forecast, July 18, 2017 – EUR/USD, Gold, Crude Oil, USD/JPY, GBP/USD

EUR/USD: Expectation of Hawkishness

The Euro has gained against the U.S Dollar solidly and has climbed above the important juncture of 1.15. Expectations among investors has increased that European Central Bank President Mario Draghi will sound more hawkish at the ECB’s Press Conference this Thursday, meaning he will begin to signal monetary policy tightening in the mid-term. Traders may seek a continued rise in value for the Euro against the U.S Dollar.

Gold: Potential of Fed Not Increasing Rate

In early trading this morning Gold has climbed and is trading around 1236.00 U.S Dollars an ounce. Buyers have rushed into the precious metal on the notion the U.S Federal Reserve may hold off on increasing its interest rate longer than anticipated. Traders could be tempted to latch onto the stronger trend in Gold in the short term, but should be alert for reversals.

USD/JPY: Yen Strength Grows

The Yen continues to show signs of strength against the U.S Dollar as it hovers near the 112.00 mark. The Bank of Japan will announce their monetary policy statement this Thursday. A stronger Japanese currency is unlikely to help Japan’s economy, but in the short term traders seem intent on continuing to sell the U.S Dollar against the Yen.

GBP/USD: Wall of Resistance Proves Strong

The Pound ran into strong resistance on Monday after its impressive gains before going into the weekend. The 1.31 level for the Pound against the U.S Dollar appears to be an important psychological boundary for investors. Market participants may continue to seek reversals in the short term with the British currency.

Crude Oil: Traders May Attempt to Sell Oil

Crude Oil produced a rather tight range on Monday. The price of the commodity remains near 46.00 U.S Dollars an ounce. Speculation remains strong in Crude Oil. While the International Energy Agency has said it expects greater demand for the commodity as the global economy improves, Crude Oil has not broken free of its range. And traders may seek some downward momentum in the short term.

Yaron Mazor is a senior analyst at SuperTraderTV.

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