Donald Trump is visiting Europe, issues related to international security are at the center of attention. This helps to ease investors' fear of trade wars, which creates a positive environment for risky currencies and assets. Optimism, however, is cooled by another huge crude oil discount and a huge disappointment, which proved to be the results of Netflix, one of the companies from the FAANG group, which guaranteed the strength of Wall Street.
EUR / USD returns above 1.17, but at night the range of changes was limited to around 20 pips. After breaking the last three weeks, the downward trend line USD / JPY remains close to 112.50. The GBP / USD has also been subject to high volatility in the last days compared to most of the G-10 pairs. Friday's minimum is almost 1.31 and yesterday's peak fell close to 1.33. Currently, the rate is at 1.3240.
On Tuesday the 17th of July, the event calendar is light in the important data releases, but the market participants should keep an eye on Claimant Count Change and Average Earnings Index in the UK, the Manufacturing Shipments data from Canada and Industrial and Manufacturing Production from the US. Moreover, there is a scheduled speech from Federal Reserve Chairman Jerome Powell later during the session.
NZD/USD analysis for 17/07/2018:
Among the major pairs today, NZD leads the way. Admittedly, consumer inflation reading for the second quarter was lower than expected (1.5% year-on-year with expected 1.6% year-on-year), but the show was steered by core inflation, whose dynamics at the level of 1.7% y/y was the highest since 2011. In addition, the reading of the indicator for the first three months of this year was revised upwards.
Let's now take a look at the NZD/USD technical picture at the H4 time frame. The rate is growing today by about 1.0% and is heading towards 0.6856 resistance on positive and strong momentum and there is plenty of room to the upside if this level is violated. The nearest support is seen at the level of 0.6792.
