CFD Markets News and Forecasts — 22-07-2020

FXStreet notes that Gold/Silver ratio sold off aggressively eroding the 2011-2020 uptrend and Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, awaits further losses to the 200-week moving average at 82.34.

“The Gold/Silver ratio has sold-off aggressively eroding the 2011-2020 uptrend. It will shortly encounter the 84.04 December 2019 low. This may hold the initial test, but having eroded a major uptrend we suspect further losses to the 200-week ma at 82.34. Failure there will target the 79.17 September 2019 low.” 

“Rallies are likely to find the previous high at 93.10 – the July 2019 high.”

The U.S. Energy Information Administration (EIA) revealed on Wednesday that crude inventories rose by 4.892 million barrels in the week ended July 17. Economists had forecast a decrease of 1.950 million barrels.

At the same time, gasoline stocks dropped by 1.802 million barrels, while analysts had expected a decline of 1.386 million barrels. Distillate stocks increased by 1.073 million barrels, while analysts had forecast a decrease of 0.618 million barrels.

Meanwhile, oil production in the U.S. grew by 100,000 barrels a day to 11.100 million barrels a day.

U.S. crude oil imports averaged 5.9 million barrels per day last week, up by 373,000 thousand barrels per day from the previous week.

The National Association of Realtors (NAR) announced on Wednesday that the U.S. existing home sales climbed 20.7 percent m-o-m to a seasonally adjusted rate of 4.72 million in June from 3.91 million in May, pointing to a market turnaround after three straight months of sales declines caused by the ongoing pandemic. This was the largest increase in existing home sales on record.

Economists had forecast home resales jumping to a 4.78 million-unit pace last month.

In y-o-y terms, however, existing-home sales fell 11.3 percent in June.

According to the report, each of the four major regions recorded m-o-m growth, with the West experiencing the greatest sales recovery. Single-family home sales stood at 4.28 million in June, up 19.9 percent from 3.57 million in May, and down 9.9 percent from one year ago. The median existing single-family home price was $298,600 in June, up 3.5 percent from June 2019. Meanwhile, existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 440,000 units in June, up 29.4 percent from May and down 22.8 percent from a year ago. The median existing condo price was $262,700 in June, an increase of 1.4 percent from a year ago.

“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown,” noted Lawrence Yun, NAR’s chief economist. “This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”

According to three sources, both measures are set to be officially extended on Tuesday when the ECB's vulnerability assessment report is set to be published.

• It's an ambitious package
  
• ECB baseline forecast is in right place
• Economic recovery is "uneven and uncertain"
  
• Encouraging more bank consolidation in Eurozone; Europe banking is fragmented
• European banks don't have solvency issues
• Price stability can be significantly affected by climate change

• UK is not put a specific time frame on getting trade deal with U.S. Government wants to get deal that works for UK

FXStreet notes that the Aussie has a positive correlation with risk given its association with the carry trade, which is expected to continue in the short-term. Nevertheless, economists at Rabobank, see the AUD/USD trading lower at 0.67/68 on a three-month view.

“It is possible that carry trades will sustain AUD/USD around current elevated levels in the near-term. However, we remain cautious about the outlook for the AUD on a three-month view.”

“With one eye on the currency, it is possible that RBA Governor Lowe will use the August 4 RBA meeting to sound a more dovish tone. In addition, talks of an extension of the lockdowns in Melbourne could impact confidence. More broadly there are concerns about Q2 earnings and we expect these worries to drift into Q3 earnings season given the unfolding demand side dynamics.”

“On a three-month view we expect AUD/USD to adjust lower towards the 0.67/0.68 area.” 

U.S. stock-index futures traded mixed on Wednesday, as worsening tensions between the U.S. and China offset optimism of more fiscal stimulus in the U.S.

Global Stocks:

Tesla (TSLA) target raised to $800 from $500 at BofA Securities

IBM (IBM) upgraded to Buy from Hold at Argus; target $155

(company / ticker / price / change ($/%) / volume)

Statistics Canada reported on Wednesday the country’s consumer price index (CPI) rose 0.8 percent m-o-m in June, following a 0.3 percent m-o-m gain in the previous month.

On the y-o-y basis, Canada’s inflation rate increased 0.7 percent last month after declining 0.4 percent m-o-m in May. That marked the biggest y-o-y advance in consumer prices since March 2011.

Economists had predicted inflation would increase 0.4 percent m-o-m and 0.3 percent y-o-y in May.

According to the report, prices rose in five of the eight major components on a y-o-y basis, with food (+2.7 percent y-o-y) and shelter (+1.7 percent y-o-y) prices contributing the most to the all-items jump. 

GBP fell against its major rivals in the European session on Wednesday, as worries over the U.S.-China tensions and coronavirus pandemic dented risk appetite.

The U.S. President Donald Trump warned on Tuesday that the U.S. pandemic will "get worse before it gets better." His uncharacteristically pessimistic words highlighted the U.S. struggle to slow the spread of the virus.

According to the Johns Hopkins Center for Systems Science and Engineering, the total number of confirmed global cases of the COVID-19 rose to 14,974,446, with the U.S. recording 3,902,233 coronavirus cases, the most in the world. 

China’s foreign ministry said the U.S.ordered the closure of its consulate in Houston. He threatened that Beijing would “react with firm countermeasures”, if Washington didn’t “revoke this erroneous decision”. 

In addition, GBP was weighed down by raising concerns that the Brexit transition period would end without a trade deal between the UK and the EU. 

The UK's Transport Secretary Grant Shapps said today that the country wants a free trade deal with the bloc but is prepared for a no-deal scenario. Earlier, the Daily Telegraph suggested the two sides may fail to sign a post-Brexit trade deal.

The UK PM Boris Johnson's spokesman said yesterday that the UK will continue to engage constructively with the EU in talks on a future relationship, but that London is not willing to give up its rights as an independent state.

FXStreet reports that analysts at Credit Suisse suggest that S&P 500 above 3200/3194 can keep the immediate risk higher for a clear break above the beginning of the large February “pandemic” gap at 3260, with the top of the gap at 3328/38.

“The S&P 500 maintains its break above key resistance from the 3233 June high, albeit on low volume, but with the market for now unable to sustain its break above next flagged resistance from the bottom of the February ‘pandemic’ gap at 3260.”

“Our bias remains to give the upside the benefit of the doubt still with resistance above 3277 seen next at 3288, ahead of 3318 and then the top of the February gap at 3328/38, which we look to prove a tougher barrier. Should strength directly extend, we think this can clear the way for a move back to the 3394 high.”

“Support stays seen at 3233/31 initially, below which can see a fall back to 3215, with more important support seen at the price/gap and 13-day average support at 3200/3194. Only a close below here would be seen raising the prospect of a more concerted correction lower.”

Gold to challenge the $1921.50 2011 high - Commerzbank

FXStreet notes that gold is trading close to the $1860 mark, on course for the $1921.50 September 2011 high. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the yellow metal rally to stop at $1983.

“Gold is on course for the 1921.50 September 2011 high.” 

“Please note there is room for an overshoot to the top of a 49-year channel at 1983.00. It represents our long-term target. This should hold the initial test and provoke some profit taking.”

“Forays above 2000 are expected to remain short-lived.” 

“Support is offered by the 55-day ma at 1797 and the four-month uptrend at 1795. Below 1795 lies the 1765 May high. This guards the 1670 June low.”

FXStreet reports that Citi’s Ed Morse said, while talking to Bloomberg that gold, a zero-yielding safe haven, is a beneficiary of the low interest rate environment and the rally in the yellow metal may stall or run out of steam if inflation rises, forcing central banks to lift borrowing costs. 

Analysts at Goldman Sachs also see a potential rise in inflation as a key risk to gold’s price rally. The investment bank said earlier this year that gold would rise to a new record high above $1,920, but may a tough time crossing the psychological hurdle $2,000 if the Fed hikes rates in response to a rise in inflation. 

Gold has rallied by 21.5% so far this year, The metal picked up a strong bid at lows near $1,450 in mid-March after the U.S. Federal Reserve and other major central banks launched unprecedented liquidity-boosting programs to stabilize markets and help the global economy absorb shocks arising from the coronavirus outbreak. 

The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. rose 4.1 percent in the week ended July 17, following a 5.1 percent climb in the previous week.

According to the report, refinance applications jumped 5.3 percent, while applications to purchase a home rose 1.8 percent.

Meanwhile, the average fixed 30-year mortgage rate increased to 3.20 percent from record low 3.19 percent.

Mortgage applications increased last week despite mixed results from the various rates tracked in MBA’s survey,” noted Joel Kan, an economist for the trade group. “The average 30-year fixed rate mortgage rose slightly to 3.20%, but some creditworthy borrowers are being offered rates even below 3%.”

FXStreet reports that EUR/JPY has cleared the January high at 122.88 and now is trading around 123.74. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, targets the 200-week ma at 124.75.

“EUR/JPY has eroded the January high at 122.88 and maintains our target of the 200-week ma at 124.75. The June high lies just ahead of here at 124.43 and we would expect this to hold for some profit taking.”

“We will retain our overall bullish outlook while three-month support line at 121.30 and, more importantly, the current July low at 120.28 underpin.” 

“The 200-week ma at 124.75 guards the 2014-2020 resistance line at 127.90.”

Snap (SNAP) reported Q2 FY 2020 loss of $0.09 per share (versus -$0.06 per share in Q2 FY 2019), better than analysts’ consensus estimate of -$0.10 per share.

The company’s quarterly revenues amounted to $0.454 bln (+17.1% y/y), beating analysts’ consensus estimate of $0.443 bln.

SNAP fell to $22.73 (-8.12 %) in pre-market trading.

FXStreet reports that in the opinion of FX Strategists at UOB Group the downside momentum, as well as a potential move to 6.95 in USD/CNH remain on the rise.

24-hour view: “Yesterday, we highlighted that USD ‘could drift lower to 6.9760’ and added, ‘in view of the lackluster momentum, the next support at 6.9650 is unlikely to come into the picture’. Our view was not wrong as USD dropped to a low of 6.9694. Downward momentum has improved, albeit not by all that much and from here, USD could dip below 6.9650 but the major support at 6.9500 is not likely to come into the picture (there is another support at 6.9580). Resistance is at 6.9780 followed by 6.9850.”

Next 1-3 weeks: “We have held a negative view in USD since early this month (see annotations in chart below) and our latest narrative was from last Monday (13 Jul, spot at 7.0050) wherein USD ‘could weaken further to 6.9650 with lower odds for extension to 6.9500’. After trading in a lackluster manner for more than a week, USD lurched lower and closed at 6.9725 yesterday, its lowest daily closing in about 4 months. Downward momentum has improved and from here, 6.9650 is not as strong a support as previously and the odds for USD to move to 6.9500 have increased considerably. Looking forward, the next support is at 6.9300. Overall, USD is expected to remain under pressure unless it moves above 6.9920 (‘strong resistance’ level was previously at 7.0180).”

United Airlines (UAL) reported Q2 FY 2020 loss of $9.31 per share (versus earnings of $4.21 per share in Q2 FY 2019), worse than analysts’ consensus estimate of -$9.25 per share.

The company’s quarterly revenues amounted to $1.475 bln (-87.1% y/y), beating analysts’ consensus estimate of $1.396 bln.

UAL fell to $33.00 (-0.21%) in pre-market trading.

FXStreet reports that the USD has weakened sharply again and the BBG DXY is testing its flagged long-term support at 1194/83 where it should hold for now. An eventual close below that level though would see a further material weakening of the USD over the medium-term, per Credit Suisse.

“The USD has weakened sharply again and the BBG DXY is seeing ‘its big test’ as expected at its flagged long-term supports at 1194/83 – the long-term uptrend from 2011, the series of lows seen through 2019 and earlier this year and the 61.8% retracement of the 2018/2020 bull trend.”

“Whilst our bias for the USD stays lower for an eventual break, this is likely to remain a significant challenge to remove and near-term volatility and consolidation is now expected.”

“Assuming we do see an eventual move below 1183 this would see a major top established to suggest we should see a further material weakening of the USD. We would then see next supports at 1177, ahead of 1150 and eventually 1138.”

FXStreet reports that silver has completed its much flagged multi-year base as broke above the $21.14 2016 high. Meanwhile, the Gold/Silver ratio is now seen at a key inflection point, with a break below 88.00 hinting an outperformance of the white metal.

“Silver has seen a dramatic surge higher over the past week and has cleared with ease the key high of 2019 at $19.65. This suggests a multi-year base is now being established as we have been looking for, with the next key test at $21.14, the high of 2016.”

“Through the $21.14 2016 high should further reinforce the basing story, with resistance then seen next at $25.10 and then more importantly at $26.09/22 – the 38.2% retracement of the entire 2011/2020 bear market and key lows from 2011/2012 – which we look to be a tough initial barrier.”

“The Gold/Silver ratio has seen a further sharp fall as silver outperforms and is now testing the 61.8% retracement of its entire uptrend from 2016 and long-term uptrend from 2017 around 88.00. Whilst we would expect this to hold at first, a close below 88.00 would suggest an important break lower and that silver can further outperformance to gold, warranting an exposure to precious metals that comprises both gold and silver.”

Reuters reports that the Greek economy will shrink by 8.0% this year before it rebounds by 4.5 percent in 2021, the OECD said in a report on Wednesday.

The OECD said the projection of decline in output this year was contingent on no second wave of COVID-19. Should there be a second wave, it said, the forecast decline in 2020 output would reach 9.8 percent.

FXStreet reports that gold stays on course for a move to new record highs after breaking above the $1800 level reinforced by the ongoing trend lower for US Real Yields. Strategists at Credit Suisse expect the yellow metal to test the $2000 mark.

“Gold has resumed its core bull trend and with resistance at $1796/1803 conclusively cleared and with a fresh albeit small bullish continuation pattern in place we stay bullish for a test of the $1921 record high.” 

“Bigger picture, we continue to look for an eventual move to new record highs, with resistance then seen next at $2000, then $2075/80.”

“Support at $1790 now ideally holds to keep the immediate risk higher. Only back below $1671 though would set a near-term top.”

“Falling 10yr US Real Yields remain seen as a core driver for the gold rally and we continue to look for a move here back to the lows, and potentially even lower.”

CNBC reports that while U.S. President Donald Trump could realistically attack the Hong Kong dollar’s peg to the greenback, the cost would be “very high,” said Becky Liu, head of China macro strategy at Standard Chartered Bank.

Last week, Bloomberg reported that Trump aides had dropped the idea due to inadequate support and concerns about implementation as well as whether the move would backfire. Bloomberg had previously reported that top advisors had considered undermining the peg in weighing potential retaliation for China imposing a national security law in Hong Kong.

Two methods the White House could use to damage the peg would likely backfire, Liu told CNBC on Wednesday.

One approach would involve the U.S. undermining Hong Kong exchange funds’ ability to hold U.S. dollar-denominated assets, said Liu. “But impacting one of the world’s largest reserve managers’ ability to hold U.S. dollar reserve assets would seriously undermine U.S. dollar’s role as the international reserve currency,” she added.

The Trump administration could also undercut Hong Kong banks’ ability to obtain the greenback or strip them of their ability to conduct dollar clearing activities. But that would hurt the international financial markets “too severely” and could bring about an international financial crisis, she added.

The market however should not rule out the possibility that the Trump administration could restrict some banks —particularly Hong Kong branches of Chinese banks — from accessing U.S. dollar liquidity or from conducting dollar payments, she said.

FXStreet reports that the ECB’s interventions have led to a tightening of the long-term yield spread between Italy and Germany. A statistical analysis suggests that without the ECB’s intervention, today’s Italy/Germany yield spread would be 400 basis points, compared with around 170 basis points for the actual spread, economists at Natixis brief.

“The ECB’s bond purchases have driven down risk-free long-term interest rates in the Eurozone, leading investors to rotate into riskier bonds, including those of Italy. In addition, the ECB (via the Bank of Italy) is buying Italian bonds directly and, under the PEPP program, is even able to overweight Italy in its purchases. All this has led to a tightening of the yield spread between Italy and Germany.”

“The yield spread between Italy and Germany usually depends on the gap between the public debt ratios of Italy and Germany, the potential growth gap between Italy and Germany (potential growth determines the capacity to reduce the debt ratio and the gap between the current account balances of Italy and Germany.”

“Without the ECB’s interventions, the 10-year yield spread between Italy and Germany would now be 400 basis points. Italy would be borrowing at 3.6%, which would lead the interest payments on its public debt to rise by 3 percentage points of GDP and to the impossibility of maintaining fiscal solvency.”

Reuters reports that China’s central bank does not see an immediate need to ease monetary policy further, but will keep conditions accommodative to support a recovery in the world’s second-largest economy, four policy sources told.

A stronger-than-expected rebound in activity in the second quarter has reduced the urgency for the People’s Bank of China (PBOC) to act, after policymakers announced unprecedented emergency measures early in the year to deal with the shock from the coronavirus crisis.

The PBOC also wants to avoid the side-effects caused by excessive stimulus, such as a surge in debt and risks of bubbles in the property market, said the sources, who are involved in internal policy discussions.

Moreover, policymakers are keen to save their ammunition amid uncertainty over how long it will take the global economy to recover and rising Sino-U.S. tensions, the sources said.

“We should keep monetary policy stable in the near term and leave some space for the future,” one of the sources said.

The PBOC did not immediately respond to Reuters’ request for comment.

The PBOC has rolled out a raft of steps since February, including cuts in lending rates, banks’ reserve requirement ratios (RRR) and targeted support for virus-hit companies such as cheap loans.

That marked an escalation in the current easing cycle that started in early 2018, although it has not slashed interest rates to near zero or embarked on quantitative easing as have many other major central banks.

The economy grew 3.2% in the second quarter, following a record 6.8% slump in the first three months of 2020 as the virus and strict measures to contain it paralyzed much of the country.

That was backed by record first-half bank lending of 12.09 trillion yuan ($1.73 trillion).

PBOC Governor Yi Gang has pledged to keep liquidity ample and boost new loans to nearly 20 trillion yuan this year, but he has also said China would need to consider withdrawing policy support at some point.

eFXdata reports that Credit Agricole CIB Research discusses EUR/CHF outlook and maintains a bullish bias, expressing that via holding a long position targeting a move towards 1.15.

"EUR/CHF has been advancing of late hand in hand with outperforming EUR-denominated risk assets, a development that may continue going forward should it be indicative of an improving risk asset related capital flow situation. Historically speaking, the capital flow situation has been a strong driver of the cross, especially in an environment where policy differentials are unlikely to change materially,' CACIB notes. 

"Last but not least, elevated speculative CHF long positioning suggests that position squaring related downside risk for the CHF stays high too. All of the above speaks in favour of further but gradual upside in the cross, which we stay long as a trade recommendation," CACIB adds.

During today's Asian trading, the US dollar was trading steadily against the euro and the yen after a significant decline the day before.

The ICE Dollar index, which shows the value of the dollar against six major world currencies, rose 0.04% from the previous day.

Expectations of new fiscal stimulus in the US due to the coronavirus pandemic have helped improve risk appetite and weakened demand for the dollar.

Meanwhile, Republicans and Democrats disagree about the scope of the new financial support package. House speaker Nancy Pelosi told reporters that the $1 trillion package of measures being considered by Republicans is insufficient.

Investors also reduced their investments in the dollar after the news about the agreement of the European Union's anti-crisis plan.

EU leaders have reached an agreement on a recovery plan for the economy affected by the coronavirus pandemic and the EU budget for 2021-2027 after four days of talks, European Council President Charles Michel announced yesterday.

FXStreet reports that the Kiwi is flying, up 0.2% on the day to 0.6655, after breaking convincingly through 0.66 for the first time since the COVID-19 crisis. In the opinion of economists at ANZ Bank it is difficult to see momentum cooling down, therefore, they look for the 0.6755 resistance.

“The Kiwi made a clean break through 0.66 for the first time since the COVID-19 crisis. The move was fuelled mostly by global factors (equity rally, USD weakness, growing vaccine optimism), but with a local flavour too, with higher WMP prices giving it a boost.”

“Minor corrections aside, it’s difficult to see the momentum subsiding, even though markets seem to be ‘priced for perfection’, suggesting a degree of fragility. Consider, for example, what may happen if vaccine hopes are dashed, or geopolitical tensions flare up. But for now, it’s ‘all go’ for the Kiwi.”

“Support 0.6450 Resistance 0.6755”

CNBC reports that while markets reacted positively this week to promising news of potential coronavirus vaccines in development, a top economist warned that the economic hit from the pandemic will be here for a long time. 

A large number of small businesses that closed in March — when restrictions around social movements went into effect — are not going to reopen even when the situation improves, according to Raghuram Rajan, a professor of finance at the University of Chicago’s Booth School of Business.

“I think the hit is going to be with us for a long time,” Rajan, who was also the former governor at India’s central bank, told CNBC on Wednesday. 

“As this goes on, more and more businesses find that a long period without revenue, but high cost, implies that they simply don’t have a chance, and they’re closing down,” he added. 

Small and medium-sized businesses around the world have been disproportionately affected by national lockdowns and social distancing protocols. Countries enacted those measures in order to slow the spread of the virus, which has already infected more than 14.8 million people and killed over 615,000. 

Newly released data published Monday in the medical journal The Lancet said a potential coronavirus vaccine developed by Oxford University alongside pharmaceutical giant AstraZeneca produced a promising immune response in a large, early-stage human trial. Earlier this month, pharma giant Pfizer and German drugmaker, BioNTech, also reported early positive data on a joint vaccine candidate. 

Still, the economic damage will be done even if several of the vaccine candidates get approval as early as the fourth quarter, and vaccination is rolled out, according to Rajan. 

“You have to vaccinate a lot of people. So, the earliest people are going to feel safe going into crowded restaurants is probably going to be by the middle of next year. If everything goes according to plan — things are not going to go according to plan,” he said. 

Economies are expected to operate below full capacity for some time despite responses from policymakers, Rajan said. He explained that industrialized countries saw a “huge” policy reaction whereas emerging markets saw only a fraction of that response.

Reuters reports that Swiss Finance Minister Ueli Maurer expects state debt to climb to 125-130 billion Swiss francs (215.18 billion pounds) by year's end as the government borrows an extra 25-30 billion francs to help tackle the coronavirus pandemic's impact, he told a newspaper.

Debt could increase slightly over the next two to three years as well depending on events, he told Finanz und Wirtschaft, adding the country's "debt brake" that limits deficits would provide a certain amount of stability.

Companies hit by the COVID-19 pandemic had borrowed 15.8 billion Swiss francs in state-backed loans so far, less than originally expected, and the government had overestimated the amount of short-time work employers would use to cushion the blow of decreasing demand, he said in an interview.

But he also declined to say the situation would be better than first assumed.

"If you look at how the global economy in developing -- especially in the United States but also in other countries, with the exception of China -- it is highly uncertain how long the crisis could last. Added to this is the EU's debt, which is more likely to increase," he said.

FXStreet reports that FX Strategists at UOB Group now believe EUR/USD could test the 1.16 neighbourhood in the next weeks.

24-hour view: “Our view from yesterday that ‘the risk is still for a higher EUR’ was correct but our expectation that ‘the year-to-date high at 1.1492 could be out of reach’ was not quite right. EUR cracked 1.1492 and surged to an overnight high of 1.1539. EUR is still strong and could advance towards 1.1570 but the odds for a break of 1.1600 today are not high. On the downside, 1.1465 is expected to be strong enough to hold any pull-back (minor support is at 1.1495).”

Next 1-3 weeks: “We have held a positive view in EUR since middle of last week and we highlighted earlier yesterday (21 Jul, spot at 1.1450) that ‘the prospect for a break of the year-to-date high of 1.1492 has increased’. We added, ‘in view of the still ‘tentative’ momentum, it is left to be seen if EUR can extend its gain to 1.1540’. However, the overnight price action was anything but tentative as EUR surged and came within 1 pip of 1.1540 (high of 1.1539). Impulsive upward momentum suggests further EUR strength is likely and the next level to focus is at 1.1600. The current positive outlook is deemed as intact unless there is a breach of 1.1425. On a shorter-term note, 1.1465 is already a strong support level.”

EUR/USD

Resistance levels (open interest**, contracts)

$1.1646 (1079)

$1.1616 (1484)

$1.1592 (1375)

Price at time of writing this review: $1.1541

Support levels (open interest**, contracts):

$1.1499 (60)

$1.1478 (33)

$1.1452 (78)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date August, 7 is 49852 contracts (according to data from July, 21) with the maximum number of contracts with strike price $1,1400 (4039);

GBP/USD

Resistance levels (open interest**, contracts)

$1.2842 (1810)

$1.2821 (1901)

$1.2804 (1148)

Price at time of writing this review: $1.2717

Support levels (open interest**, contracts):

$1.2641 (116)

$1.2570 (62)

$1.2486 (535)

Comments:

- Overall open interest on the CALL options with the expiration date August, 7 is 19833 contracts, with the maximum number of contracts with strike price $1,3000 (2736);

- Overall open interest on the PUT options with the expiration date August, 7 is 19701 contracts, with the maximum number of contracts with strike price $1,2400 (1519);

- The ratio of PUT/CALL was 0.99 versus 0.96 from the previous trading day according to data from July, 21

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.