Pound in focus ahead of UK jobs report

Daily Analysis - 17/07/2018

Fed Chair Jerome Powell Testimony main risk event today

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The dollar slipped against everything except against the yen earlier this morning. The big event of the day is Fed Chair Powell's semi-annual testimony in front of Congress. This will be the main driver of the dollar and any hint of hawkishness from Powell could help the greenback recoup recent losses.

GBP resilient


UK PM Theresa May barely scraped through another House of Commons vote on Monday evening. However, the Brexit bill saga is far from over. For today Brexit may take a backseat as the focus will turn to the UK employment report. Key levels remain quite well observed with strong support at $1.3100. Immediate resistance is at $1.3290.

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Oil plunges


WTI oil broke below a key technical level yesterday and tumbled below $70 a barrel to test $67.70. Several factors have put pressure on oil prices. Rumors about emergency action from the Trump administration to release emergency supplies as well as reports suggesting Saudi Arabia will ramp up production took a toll on crude prices.

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Earnings announcements today


Markets continue to focus on earnings season. On Monday, NETFLIX disappointed as subscriber growth stalled. The stock tumbled more than 14% after the announcement. Note the stock more than doubled this year because of strong gains in earnings and subscribers but Q2 missed estimates.

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