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IMF Comments Towards Overvaluation of USD, Mixed Global Indices & Oil Prices Soars Down

By Research Team Thursday, Jul 18, 2019
FOREX

GBP/USD Outlook

    • 2.52pm ISTD1
    • High1.24847
    • Low1.24267
    • Close1.24626

GBP/USD is trading at 1.24380 making a day-high 1.24467 & a day-low 1.24267. The Sterling Pound rebounded in early trade on Thursday as USD softened after IMF said that US Dollar is overvalued by 6% to 12% based on the current economic parameters. Earlier, the firm USD as FOMC Powell tempered aggressive rate cuts in upcoming meetings weighs down the currencies. The U.K CPI rate remained constant at 2.0% same as the previous figure which cushioned the pair to some extent.  An uncertain outlook towards Brexit will remain crucial for GBP/USD. As seen in the chart, a pullback rally can be noticed in the pair till MA (10) & hence, slight buying may be seen for the day.

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Evening Outlook

GBP/USD

Intra Day
Near Day

Technical Levels

R3 1.25715
R2 1.24974
R1 1.24655
Turnaround 1.24233
S1 1.23914
S2 1.23492
S3 1.22751
By Research Team Thursday, Jul 18, 2019
COMMODITY

WTI OIL Outlook

    • 3.20pm ISTD1
    • High56.93
    • Low56.45000
    • Close56.88

WTI Oil is trading at $56.63 making a day-high $56.87 & a day low $56.45. The selling pressure can be seen in Oil prices since the last few trading sessions due to an increase in supplies versus steady demand. The U.S EIA report showed a drop-down in Oil inventory level by 3.1 million barrels per day against the expected fall of 3.6 million barrels per day. Also, the U.S Gulf of Mexico producers resumed their Oil production after being halted due to a tropical storm. The resumption of U.S-China trade talks & chances of a rate cut in Fed meeting this month cushioned the prices. As seen in the chart, the Oil reversed down from Fibo level 23.6 & hence, selling may be seen further on an intraday basis.

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Evening Outlook

WTI Oil

Intra Day
Near Day

Technical Levels

R3 61.32000
R2 59.10000
R1 57.87000
Turnaround 57.04000
S1 55.73000
S2 54.90000
S3 52.76000
By Research Team Thursday, Jul 18, 2019
INDICES

JAP225 Outlook

    • 3.08pm ISTD1
    • High21299
    • Low20949.00000
    • Close21047

JAP225 is trading at 20989 making a day-high 21299 & a day-low 20949. A heavy selling can be seen in JAP225 aftermarket sentiments weakened as IMF said that the USD is overvalued by 6% to 12% based upon current economic indicators. Last week, the Fed Powell hinted a tempering aggressive interest rate or rate cut in the upcoming meeting which cushioned the indices. In Japan, the Trade Balance deficit narrowed to 0.01T from 0.62T in the previous month showing an improvement in manufacturing & industrial activity. The trade talks between U.S & China will remain crucial for the indices. Slight selling may be initiated for the JAP225 as it crossed down the Moving Averages.

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Evening Outlook

JAP225

Intra Day
Near Day

Technical Levels

R3 21614.00000
R2 21503.00000
R1 21446.00000
Turnaround 21392.00000
S1 21335.00000
S2 21281.00000
S3 21170.00000