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According to ActionForex, analysts at TD Bank Financial Group note that consumer prices rose 0.6% month/month in June, recording the first increase since COVID-19 hit, and were up 0.6% year/year, accelerating from only 0.1% in May.

"Energy prices increased for the first time in six months, up 5.1% in June. The price of gasoline rose 12.3% m/m, but remained 23.4% below year-ago levels. In contrast, food prices were up 4.5% versus a year ago, after another hearty increase in June (+0.6% m/m). Beef prices increased again last month (+4.8% m/m), and have risen 20.4% over the past three months alone."

"After three consecutive months of declines, core prices rose 0.2% m/m in June. As a result, core inflation was 1.2% on a year/year basis, matching May’s pace."

"After significant discounting earlier in the pandemic, prices for many categories rebounded in June. Leading the way was motor vehicle insurance prices, up +5.1% m/m. Apparel prices also bounced back (1.7% m/m). On the services side, core services prices were up a solid 0.3% m/m, driven in large part by a 0.5% increase in medical services costs. Medical services inflation is now up 6.0% year/year, the fastest rate of inflation since the early 1990s. Many aspects of medical care have seen prices accelerate in recent months, but the most dramatic is health insurance costs, which are up almost 20% over the past year. Prices also rebounded for airline fares (+2.6% m/m) and car and truck rentals (+17.5%)."

"Some price weakness did persist in June, with prices for used vehicles continuing to fall (-1.2% m/m). Recreation prices were also lower (-0.6% m/m), as were communication (-0.3% m/m), while new vehicles prices remained unchanged. Inflation pressures for shelter have also cooled a bit, with rent of primary residence up a modest 0.1% m/m, the softest pace since 2011. Owner’s equivalent rent was also up only 0.1% on the month."

• Says that U.S.' warning over risks in maintaining supply chains associated with what it described as rights abuses in Xinjiang  hurt global supply chain
• It also affects global economic recovery from the coronavirus pandemic
• Pledges to take necessary measures to defend the legal rights of Chinese firms

James Knightley, Chief International Economist at ING, notes that U.S. inflation was a touch stronger than expected, but reflects more a bounceback from extremely depressed price levels rather than signaling inflation is any sort of issue.

"There was a modest upside surprise to headline US consumer price inflation at 0.6% month-on-month for June and the core at 0.2% MoM (both 0.1 percentage point above consensus). The annual rates were broadly as expected at 0.6% year-on-year for headline and 1.2% YoY for core."

"This is the biggest MoM rise in headline inflation since 2012 with the main contributor being the 12.3% MoM increase in gasoline following huge plunges in recent months."

"Despite the slight upside surprise we would characterize this as a modest bounce from extremely depressed price levels rather than offering any real indication inflation pressures are about to build. After all, the economy remains far weaker than before the crisis with output around 11% lower than the end of 2019 and employment is still 15mn below the levels of February. This suggests a huge output gap with the US economy having significant scope to grow before any real inflation threat emerges."

"Moreover, with an increasing number of Federal Reserve officials expressing concern over a loss of economic momentum as states reintroduce Covid-19 containment measures, they will continue to do what is necessary to keep credit flowing and interest rates pinned to the floor."

• Forex interventions are most-effective instrument to curb CHF's strength
• Forex interventions and negative rates are essential
• Even though we still have scope for further rate cuts, the fact remains that we cannot cut rates indefinitely
• Virus has increased upward pressure on CHF
• Challenge will be when and how quickly to normalize policy

FXStreet suggests that there is the possibility of an increase in JPY strength in the months ahead given the rise in Chinese related tensions as investor sentiment rather than domestic fundamentals can be a bigger driver of the Japanese yen. Therefore, economists at Rabobank forecast USD/JPY below 106 on a three-month view.

“There is precedent for the markets to ignore the build-up of bad news for some time before a certain trigger unleashes a wave of investor retrenchment; this is what happened at the start of the covid-19 crisis. If news regarding the build-up of Chinese tensions continues in the current trajectory, there is a very strong chance that the JPY will spike higher in the coming months.”

“We would favour buying the JPY on dips in the current environment and see risk of USD/JPY heading back below 106 on a three-month view.”

The Labor Department announced on Tuesday the U.S. consumer price index (CPI) rose 0.6 percent m-o-m in June, following an unrevised 0.1 percent m-o-m decline in the previous month. This was the first monthly increase in four months.

Over the last 12 months, the CPI also rose 0.6 percent y-o-y last month, following an unrevised 0.1 percent m-o-m gain in the 12 months through May. This was the highest reading since March.

Economists had forecast the CPI to gain 0.5 percent m-o-m and to increase 0.6 percent y-o-y in the 12-month period.

According to the report, the gasoline index rose sharply in June after recent declines and accounted for over half of the monthly gain in the seasonally adjusted all items index. The energy index surged 5.1 percent m-o-m in June as the gasoline index climbed 12.3 percent m-o-m. In addition, the food index rose 0.6 percent m-o-m in June.

Meanwhile, the core CPI excluding volatile food and fuel costs increased 0.2 percent m-o-m in June after a 0.1 percent m-o-m fall in the previous month. This was its first monthly increase since February.

In the 12 months through June, the core CPI rose 1.2 percent, the same pace as in the 12 months ending May. This remained the lowest rate since March 2011.

Economists had forecast the core CPI to edge up 0.1 percent m-o-m and to rise 1.1 percent y-o-y last month.

• Sees 2020 demand dropping 8.95 mbpd compared to a decrease of 9.07 in prior report
• Sees U.S. output down 1.37 mbpd this year; up 0.24 mbpd next year
• Oil stocks are 210 million barrels above 5-year average
• Efficiency gains and remote working to cap demand rise in 2021 to below 2019 levels

• We will be ready if there is a second wave
• In the coming weeks, we will make masks compulsory in all enclosed public spaces
• Masks should be worn for public events held outdoors

GBP fell against its major counterparts in the European session on Tuesday as much-weaker-than-expected growth of the UK’s economy in May raised questions about the pace of the country’s economic recovery from the coronavirus pandemic.

The Office for National Statistics (ONS) reported that the UK's GDP grew 1.8 percent m/m in May, rebounding from a record 20.3 percent m/m tumble in April but missing economists' forecasts of a 5.5 percent m/m advance. According to the ONS, industrial production surged 6.0 percent m/m in May, following a 20.2 percent m/m fall in April. At the same time, manufacturing rose 8.4 percent m/m after a 24.4 percent m/m decrease in the previous month. Services output grew 0.9 percent m/m after contracting 18.9 percent m/m. Construction expanded 8.2 percent m/m in May after a record 40.2 percent m/m tumble a month ago.

In y/y terms, the UK's GDP plunged 24.0 percent in May, easing from a record 25.3 percent decline in April, while economists had forecast a 20.4 percent decline. In the three months to May, Britain's economy contracted 19.1 percent y/y, the most on record, following a 10.8 percent y/y fall in April. 

The weaker-than-anticipated May GDP data raised questions about the possibility of a V-shaped recovery of the UK's economy that many economists had been forecasting.

Meanwhile, a separate report from ONS revealed that the UK's trade deficit narrowed to GBP2.81 billion from GBP4.80 billion in April. Economists had forecast a gap of GBP8.10 billion. The country's exports of goods rose by 6.6 percent y/y, while imports dropped by 1.7 percent y/y.

Lingering risks of a no-deal Brexit also weighed on the British currency.

FXStreet notes that the S&P 500 has been treading water in recent weeks at a level just 5% below its all-time high. Meanwhile, certain economic risks are clearly growing, yet the ones that concern Lisa Shallet from Morgan Stanley the most aren’t the same ones many investors seem to be worrying about.

“COVID-19 Resurgence: As long as the growth in COVID-19 infections doesn’t result in hospital-system breakdowns, we forecast economic gains continuing and Americans powering through.”

“Trade Tensions: While tensions with China are likely to dominate the election rhetoric of both parties, the fragility of the global recovery during this pandemic suggests that world leaders will maintain a much more pragmatic stance that keeps trade policy unchanged.”

“US Post-Election Policy Shifts: Politics may loom large, but  material policy shifts seem unlikely in the near-term. While many polls now suggest that a Democratic sweep in November is plausible, we don’t see immediate tax hikes and costly expansions of the healthcare system as a likely outcome.”

“Disappointing Earnings: The risk that many companies may miss earnings expectations has grown, especially as more of them pull their guidance due to economic uncertainty. Meantime, investors are crowding into a handful of popular tech names with sky-high valuations.” 

“Rising Inflation: The combination of money-supply growth and a weaker dollar, among other factors, point to rising inflation expectations that could raise long-term interest rates and lower equity valuations.”

“Legislative Inaction on More Stimulus: Congress will be going into August recess soon. Failure to extend unemployment benefits would likely expose the growing level of permanent job losses that are appearing below the surface of the economy.”

“My advice to investors: Put emphasis on diversification, adding gold, corporate credit and international stocks to portfolios that are overweight the S&P 500 index. Meantime, look for July fiscal stimulus renewal and tech-sector earnings guidance, which could alleviate some of the concerns I’m most focused on.”

FXStreet notes that EUR/USD is trading above the 1.1355 level, up 0.12% on the day, and is set to test the 1.1369/71 key resistance. A break above here would open the door to a challenge on the March high for the year at 1.1495, analysts at Credit Suisse apprise.

“A close above the key resistance at 1.1369/71 – the 38.2% retracement of the entire 2018/2020 fall and high of last week – remains seen as the barrier to see the range resolved higher with potential trend resistance seen at 1.1397 next, ahead of the high of June at 1.1423 and then more importantly the high for the year at 1.1495.”

“Whilst we expect the 1.1495 level to remain a formidable barrier, a break higher at any stage would be seen completing a significant medium-term base to mark a more sustained trend higher which could eventually see the market test its early 2018 point-of-breakdown at 1.2155.” 

“Support moves to 1.1324 initially, with 1.1295/91 now ideally holding. Beneath can see a retest of price support at 1.1258/54, but only below here would warn of an in-range top.”

FXStreet reports that FX Strategists at UOB Group reiterated USD/CNH remains under pressure and risks a deeper pullback in the next weeks.

24-hour view: “While our view for USD to weaken was not wrong, instead of ‘edging lower to 7.0550’, USD sliced through 7.0550 and plunged to 7.0103. The sudden and sharp drop was unexpected as USD closed lower by a whopping -0.78% (7.0129), the biggest 1-day decline since December last year. While the rapid down-move appears to be running ahead of itself, further USD weakness would not be surprising and a break of the critical support at 6.9950 could potentially trigger further selling. Overall, only a move back above 7.0380 would indicate the current weakness has stabilized (minor resistance is at 7.0250).”

Next 1-3 weeks: “We have held the view that USD is trading in consolidation phase for about 3 weeks. The manner by which the consolidation phase comes to an end was unexpected as USD staged a sudden lurch lower and plummeted by –0.78% yesterday (NY close of 7.0103). Downward momentum has picked up and the risk is for further USD weakness from here. A daily closing below the weekly trend-line support at 6.9950 could potentially lead to further sharp loss as the next support of note is not until 6.9500. All in, USD is expected to remain under pressure unless it can move back above 7.0550.”

EUR/JPY to visit the June high at 124.44 on a break above the 122.13 key resistance - Credit Suisse

FXStreet notes that EUR/JPY has surged higher for its expected retest of pivotal resistance from the top of its sideways range at 121.96/122.13. Above this level, the pair would see the core trend turning higher again for an eventual move back to the 124.44 June high, per Credit Suisse. 

“EUR/JPY has surged higher after successfully holding key price support at 120.32/27 for its expected retest of pivotal resistance from the top of the sideways range of the past month at 121.96/122.13. Although this is capping for now, beyond here, which we continue to eventually look for, remains needed to see a base established to see the core trend turn higher again with resistance seen next at the 61.8% retracement of the June fall at 122.37/51.”

“Whilst a pause at 122.37/51 should be allowed for, a break in due course can see resistance next at 123.52/62 and eventually the 124.44 June high.” 

“Near-term support moves to 121.46, then 121.22, with the immediate risk seen staying higher whilst now above 120.75. Below can see a retest of 120.32/27.”

FXStreet reports that US lockdown risk threatens H2 economic recovery as California closes indoor activities in bars, restaurants, zoos and museums statewide as COVID-19 cases surge, Wellian Wiranto from OCBC Bank reports.

“California, the most populous state in the US, announced a rollback in its reopening plan due to covid-19 resurgence fear. All bars, zoos and museums are now closed again, and people cannot dine indoors anymore. Malls, gyms, and other non-essential businesses there are shut.” 

“California contributes nearly 15% of the US GDP. The fact that it is reentering a lockdown, in and of itself, would weigh down on the hopes for H2 recovery of the US (and global) economy. While other hotspots of Florida and Texas – which together account for 14% of US GDP – are resisting massive lockdowns so far, further virus upticks there may force their hands.” 

“Overall, even as the world has just started to see some reopening uplift, the risk of having to shut down to save lives is getting very real once again, unfortunately.”

According to the report from ZEW, the Indicator of Economic Sentiment for Germany decreased slightly in July 2020. Expectations are now at 59.3 points, 4.1 points lower than in the previous month. Economists had expected a decrease to 60. The assessment of the economic situation in Germany has improved slightly for the second time since January 2020. The corresponding indicator currently stands at minus 80.9 points, an increase of 2.2 points compared to June. 

“The outlook for the German economy largely remains unchanged compared to the previous month. After a very poor second quarter, the experts expect to see a gradual increase in gross domestic product in the second half of the year and in early 2021,” comments ZEW President Professor Achim Wambach.

Financial market experts’ sentiment concerning the economic development of the eurozone has improved for the fourth consecutive time, with the corresponding indicator climbing 1.0 points to a current level of 59.6 points compared to the previous month. The indicator for the current economic situation in the eurozone climbed 0.9 points to a level of minus 88.7 points.

According to the report from Eurostat, in May 2020, when Member States began easing the COVID-19 containment measures, the seasonally adjusted industrial production rose by 12.4% in the euro area and by 11.4% in the EU, compared with April 2020. Economists had expected a 15.0% increase in the euro area. In April 2020, industrial production fell by 18.2% both in the euro area and in the EU. In May 2020 compared with May 2019, industrial production decreased by 20.9% in the euro area and by 20.5% in the EU. 

In the euro area in May 2020, compared with April 2020, production of durable consumer goods rose by 54.2%, capital goods by 25.4%, intermediate goods by 10.0%, non-durable consumer goods by 2.8% and energy by 2.3%. In the EU, production of durable consumer goods rose by 47.7%, capital goods by 24.8%, intermediate goods by 8.7%, energy by 2.5% and non-durable consumer goods by 1.8%.

In the euro area in May 2020, compared with May 2019, production of capital goods fell by 28.4%, durable consumer goods by 24.0%, intermediate goods by 19.7%, non-durable consumer goods by 14.4% and energy by 10.3%. In the EU, production of capital goods fell by 29.5%, durable consumer goods by 23.2%, intermediate goods by 18.5%, non-durable consumer goods by 13.4% and energy by 10.6%.

FXStreet reports that EUR/CHF has recovered from the 55-day moving average at 1.0638 and revisited the June 23 and 30 highs at 1.0699/1.0711 as expected. The pair is suffering today, down -0.2%, but while holds above the 1.0607 mark, EUR/CHF should look for a retest of the 1.0915 June high.

“Provided the EUR/CHF cross remains above its current July low at 1.0607 we should see a retest of the 1.0915 June high. Initial resistance is the 200-day moving average at 1.0738.”

“A daily chart close above 1.0915 would target the 1.1058 October 2019 high. Above it meanders the 200-week moving average at 1.1138.” 

“Below the 78.6% Fibonacci support at 1.0593 lies the 1.0577 May 25 low which guards the 1.0509/05 April and May lows (not favoured).”

Reuters reports that euro zone banks maintained relatively easy access to credit for firms in the second quarter with the backing of government guarantees, but they will likely tighten credit standards in the following three months, the European Central Bank said on Tuesday.

With a pandemic-induced crisis shutting much of the euro zone economy, firms rushed to tap bank credit to stay liquid and government guarantee schemes provided vital support for banks to keep cash flowing.

"In the third quarter of 2020, banks expect a considerable net tightening of credit standards on loans to enterprises, which is reported to be related to the expected end of state guarantee schemes in some large euro area countries," the ECB said in a lending survey.

Credit standards on housing loans tightened in the second quarter and this trend is likely to continue in the third quarter, the ECB added based on a survey of 144 banks done between June 5 and 23, just as restrictive measures were being slowly lifted.

Corporate credit demand also surged in the second quarter as firms drew on their credit lines for emergency liquidity but banks expect a more moderate increase in demand during the current quarter.

Household loan demand fell sharply in the second quarter but banks see a rebound in the third quarter.

A key input in the ECB's deliberations, the quarterly lending survey comes just two days before the ECB's July policy meeting that will likely review the bank's ultra easy policy stance but not approve any further stimulus measures.

eFXdata reports that Bank of America Global Research discusses its expectations for USD/JPY price action around this week's BoJ policy meeting. 

"The FX market's attention to the BoJ's next MPM remains minimal with the BoJ expected to stand pat. Both USD/JPY and cross-yen vols have fallen to post-COVID-19 lows as the market has digested the initial shock of the outbreak and subsequent policy response," BofA notes. 

"Looking beyond summer, we think the fall could raise USD/JPY volatility for several reasons:

Risk of snap election as early as in October and/or leadership change in Japan 

Focus on the Fed's policy, in particular implementation or the lack thereof of YCT and its details.

US presidential election.

How fiscal and monetary easing in the spring is feeding into the real economy.

With a recovery in Japan's basic balance of payments and proactive trading in US equities by Japanese investors, USD/JPY may be more sensitive to the US's idiosyncratic risk.

Lastly, near-term focus is on the COVID-19 outbreak in the US, and the recent pickup in infection cases in Tokyo," BofA adds. 

FXStreet reports that the EUR/JPY is once more pointing to the current July high at 121.96 and looks bullish near-term, therefore, Commerzbank’s Axel Rudolph sees EUR/JPY to revisit the 124.70 mark.

“EUR/JPY’s outlook remains short-term bullish while a redrawn three-month support line at 120.53 and the current July low at 120.28 underpin.” 

“We are still looking for the cross to recover further and expect the 200-week moving average at 124.70 to eventually be revisited. It guards the 2014-2020 resistance line at 128.15.” 

“Below 120.28 the 200 and 55-day moving averages as well as the June low can be spotted at 119.81/119.31.”

FXStreet reports that China's exports and imports beat expectations in June. However, trade is still well down compared to the same period last year. The trade data is likely to yield a mixed reaction while USD/CNY looks oversold around 7.00, economists at TD Securities inform.

“China's June trade data came in better than expected, with exports rising 0.5% YoY (mkt -2.0%, TD -2.1%) and imports rising 2.7% YoY (mkt -9.0%, TD -12%). As a result, the trade surplus fell to $46.42 billion from $62.93 billion in the previous month. The data revealed a sharp improvement compared to last month, when imports slid sharply. However, trade in H1 is still well down on the same period last year, with overall exports down 6.2% and imports down 7.1%.”

“Going forward, import demand should continue to be supported by domestic growth improvement, though high frequency data suggest that momentum is slowing. Exports will likely struggle following a near term bounce as economies globally struggle to deal with second virus waves and uneven opening up. Overall, the data present a more constructive picture of China's economy, consistent with our forecast of a better than consensus Q2 GDP reading on Thursday; we expect a 2.7% YoY (mkt 2.2%) increase, following a 6.8% fall in Q1.”

“Market reaction is likely to be mixed, with upside potential limited against the current backdrop; China's authorities have tried to dampen some of exuberance in domestic equities over recent days and risk appetite has turned more negative amid negative second wave virus news globally and worsening US/China tensions.”

“CNY has maintained a firm tone over recent weeks, both vs. USD and on a trade weighted basis. However, USD/CNY looks oversold and we think USD/CNY will struggle to maintain any short-term move below 7.00 amid mounting US/China tensions.”

During today's Asian trading, the US dollar was almost unchanged against the yen and euro, despite the German data.

Consumer prices in Germany rose 0.8% year-on-year in June, compared with 0.5% a month earlier, according to final data from the Federal statistical office. Consumer prices increased by 0.7% compared to the previous month.

The ICE Dollar index, which shows the value of the dollar against six major world currencies, rose 0.11% relative to the previous trading day.

Traders are concerned about growing tensions between Washington and Beijing.

The pound fell slightly against the us dollar, reacting to the data on the UK. The UK economy in may declined by 24% in annual terms after falling by a record 25.3% a month earlier, according to data from the National statistics office. On a monthly basis, GDP grew by 1.8% after falling by 20.3% in April.

According to the report from Federal Statistical Office, the Producer and Import Price Index rose in June 2020 by 0.5% compared with the previous month, reaching 98.1 points (December 2015 = 100).  Economists had expected a 0.3% increase. The rise is due in particular to higher prices for petroleum products as well as petroleum and natural gas. Compared with June 2019, the price level of the whole range of domestic and imported products fell by 3.5%. 

The Producer Price index registered higher prices compared with the previous month, particularly for petroleum products. Cattle for meat also became more expensive. In contrast, decreasing prices were observed for scrap.

Petroleum products, petroleum and natural gas were responsible in particular for the increase in the Import Price index compared with May 2020. Higher prices were also seen for non-ferrous metals and products made therefrom as well as for passenger cars. In contrast, fresh vegetables, wine and steel became cheaper.

According to the report from Federal Statistical Office (Destatis), the inflation rate in Germany, measured as the year-on-year change in the consumer price index, stood at +0.9% in June 2020. Hence the inflation rate increased slightly in June 2020 (May 2020: +0.6%). Destatis also reports that consumer prices rose by 0.6% compared with May 2020.

The prices of goods (total) rose by just 0.2% from June 2019 to June 2020, which is mainly due to the decreases in energy prices (-6.2%). The price decrease thus slowed (May 2020: -8.5%), above all due to the increase in oil prices in the world market. Especially the prices of heating oil (-26.5%) and motor fuels (-15.1%) were down in June 2020 on the same month of the preceding year, whereas electricity prices were up 4.1%. Also, Food prices increased above average (+4.4%). Prices were up in particular for fruit (+11.1%) and for meat and meat products (+8.2%), while the prices of edible fats and oils declined (-3.6%). Other notable price rises were observed for tobacco products (+6.2%) as well as newspapers and periodicals (+4.5%), while price decreases were recorded, for example, for information processing equipment (-4.9%).

The marked year-on-year decrease in energy product prices had a downward effect on the inflation rate. Excluding energy product prices, the inflation rate would have been +1.6% in June 2020; excluding the prices of energy products and food, it would have been just +1.3%.

Office for National Statistics said, in May 2020 the index of production remains 19.1% below February 2020, the previous month of "normal" trading conditions, prior to the coronavirus (COVID-19) pandemic.

Production output rose by 6.0% between April 2020 and May 2020, with manufacturing providing the largest upward contribution, rising by 8.4%, the largest month-on-month rise since February 1979 (9.5%); there were also rises from mining and quarrying (5.0%) and water and waste (0.5%), which was offset by a fall in electricity and gas (down by negative 2.5%).

The monthly increase of 8.4% in manufacturing output was led by rubber and plastic products (32.5%); of the 13 subsectors, 11 displayed upward contributions.

Total production output decreased by 15.5% for the three months to May 2020, compared with the three months to February 2020; this was led by manufacturing output, which fell by 18.0%.

The three-monthly fall in manufacturing is because of widespread weakness, with 12 of the 13 subsectors providing downward contributions; this was led by transport equipment which fell by 45.7%.

For the three months to May 2020, compared with the three months to May 2019, production output decreased by 17.0%; this was led by a fall in manufacturing of 19.9% where 12 of the 13 subsectors displayed downward contributions.

According to the report from Office for National Statistics, GDP fell by 19.1% in the three months to May, following falls of 10.8% in April and 2.2% in March, as government restrictions on movement dramatically reduced economic activity. All the main sectors in the economy also saw a fall in the most recent period.

The ONS also reported that GDP grew by 1.8% in May 2020. Despite this, the level of output did not recover from the record falls seen in March and April 2020 and has reduced by 24.5% compared with February 2020, before the full impact of the coronavirus. Economists had expected a 5.5% increase.

Commenting on today's GDP figures, Jonathan Athow, Deputy National Statistician for Economic Statistics, said: "Manufacturing and house building showed signs of recovery as some businesses saw staff return to work. Despite this, the economy was still a quarter smaller in May than in February, before the full effects of the pandemic struck. In the important services sector, we saw some pickup in retail, which saw record online sales. However, with lockdown restrictions remaining in place, many other services remained in the doldrums, with a number of areas seeing further declines."

EUR/USD

Resistance levels (open interest**, contracts)

$1.1417 (1778)

$1.1389 (516)

$1.1368 (1099)

Price at time of writing this review: $1.1337

Support levels (open interest**, contracts):

$1.1249 (411)

$1.1226 (506)

$1.1198 (1103)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date August, 7 is 53636 contracts (according to data from July, 13) with the maximum number of contracts with strike price $1,1400 (5929);

GBP/USD

Resistance levels (open interest**, contracts)

$1.2754 (1781)

$1.2692 (1230)

$1.2648 (654)

Price at time of writing this review: $1.2541

Support levels (open interest**, contracts):

$1.2430 (308)

$1.2396 (1140)

$1.2359 (1517)

Comments:

- Overall open interest on the CALL options with the expiration date August, 7 is 18212  contracts, with the maximum number of contracts with strike price $1,3000 (2987);

- Overall open interest on the PUT options with the expiration date August, 7 is 18625 contracts, with the maximum number of contracts with strike price $1,2400 (1517);

- The ratio of PUT/CALL was 1.02 versus 1.02 from the previous trading day according to data from July, 13

* - 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.