Trading session on Wednesday began with the active sales US dollar. By 9:00 Moscow time the USDJPY hit 108.30, while retaining the potential for an even greater reduction. In addition to increased geopolitical risks, especially related with a difficult trade relations between the US and China, market participants are beginning to pay more attention to the prospects for US monetary policy.
Published yesterday, data on the index of producer prices was another proof of the continuing pressure on overall consumer price index in the United States. In particular, the producer price index excluding food and energy declined by 0.1% to 2.3% in annual terms. The next major challenge for the dollar will be the actual data on inflation, which will be released today at 15:30 GMT. Given that the level of inflationary pressure in the country remains a key indicator for the Fed's decision to change the interest rate, it is clear that today's release would have a serious impact on the dollar. According to forecasts of the consumer price index fell in May. If it is confirmed, the likelihood that the Fed will lower its key interest rate in September, will increase substantially. It is worth noting, what this continues to urge US President Donald Trump. Perhaps his constant criticism of the American regulator will be another decisive factor of the national monetary policy easing. Against this background, the USDJPY risks consolidate below 108.00.
SellLimit the TP 108,50 USDJPY 107,10 SL 108.80
Brent crude oil reduced the third consecutive session. By 9:00 Moscow time the environment the cost of a barrel of oil has reached $ 61.1. As expected, sellers seriously intend to return quotes below the psychological level of $ 60 per barrel, which can proizoyti before the end of the day. Market participants continue to monitor trade conflicts between the US and China, which, apparently, has overcome a point of no return. On the eve of Trump warned China that will introduce new tariffs if his Chinese counterpart Xi Jinping will not meet with him at the summit of G-20 at the end of the month. We believe that the direct threat of an escalation of trade tensions is unlikely to be a good incentive to return to the negotiations in a constructive direction. Locally where large driver for oil prices may make today a report on changes in stocks of oil and petroleum products in the US, which will be published at 17:30 GMT. A few hours ago, the American Petroleum Institute reported that commercial crude oil inventories last week rose to 4.85 million. In the case of similar data, and output from the Energy Information Administration, sellout intensify hydrocarbons. Particular attention is paid to advise the data on stocks of gasoline in the United States. It is they who cause the most problems, as continue to grow in the season, when traditionally falling. Additional pressure on crude oil may have and increase of production in the United States, the level of which regularly updates the historical maximum.
Brent SellLimit 61,50 TP 59, 50 SL 61,90
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author trader analyst Artem Deev company AMarkets