July 13, 2022
EUR/USD: The EUR/USD retraced from 20-year lows around the parity area, having recovered Monday’s losses, as market sentiment is mixed as we can see in the US equities gainers and losers dynamic ahead of the US June Consumer Price Index publication. The Eurozone economic calendar will feature the Industrial Production for the Eurozone and Germany’s Inflation Rate. The US docket will report June’s inflation rate which is expected at 8.8%, while core CPI is estimated at 5.8%. Later, EUR/USD traders will get hints in the Fed’s book, which the Fed uses in its monetary policy meetings.
SELL 1.0070/TP 0.9950/SL 1.0120
USD/CAD: Loonie pair have broken the important resistance level before it trimmed a part of its daily gains. The prices pulled back to the 1.3020 area during the early US session, despite the short-term market mood is still in the favour of bullish traders. On the other hand, a sharp decline in crude oil prices undermined the commodity-linked loonie and supported prospects for the emergence of some dip-buying around the USD/CAD pair. Oil prices were pushed down by fresh COVID-19 restrictions in China, which, along with recession fears, have raised concerns about the broad fuel demand.
BUY 1.3030/TP 1.3150/SL 1.2980
WTI: The price of West Texas Intermediate oil is reaching out a fresh low of $93.50 so far. The US dollar reached fresh 20-year highs on concerns China could enter another round of Covid-19 lockdowns, despite OPEC’s issuing a bullish forecast for 2023 demand. However, OPEC said yesterday that it expects demand to rise, even as production capacity remains limited. In a Monthly Oil Market Report, the group said it expects demand to rise by 2.7-million barrels per day next year as it expects the global economy to rise by 3.2%. Money managers cut their long positions in both Brent and WTI to the lowest level since 2020, according to the CFTC data released last Friday as investors are unwilling to hold commodity long positions during this period of uncertainty.
SELLL LIMIT 96.00/TP 93.50/SL 97.50