TECHNICAL ANALYSIS REPORT TODAY – 19 JULY 2021, BY CAPITAL STREET FX

- July 19, 2021

Asia Pacific stocks were down, falling to a one-week low, on Monday morning. The Shanghai composite is down 0.19% at 3,532.83. Overall, the Singapore MSCI down 1.02% at 354.95. Over in Hong Kong, the Hang Seng Index down 1.86% at 27,500. In Japan, the Nikkei 225 down 1.22% at 27,590, while the Topix index is down 1.22% at 1903.0. South Korea’s Kospi down 0.91% to 3247.25. Australia S&P/ASX 200 down 0.78% at 7290.9.

European equities Friday closing. The DAX futures contract in Germany traded down 0.57% at 15540.31, CAC 40 futures down 0.51% at 6460.09 and the UK 100 futures contract in the U.K. down 0.46% at 6,943.80.

In U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.86% at 34687.86. The S&P 500 down 0.75% to 4327.15 and the Nasdaq 100 down 0.17% at 14657.2, NYSE closes at 16364.66 down 0.81%.

In the Forex market, GBPUSD down 0.02% at 1.37522. The USDJPY down 0.07% at 109.945. The USDCHF up 0.11% at 0.91952. EURUSD up 0.01% at 1.18027, EUR/GBP up 0.018% at 0.85823. The USD/CNY up 0.03% at 6.4807, at the time of writing.

In the commodity market U.S. Gold futures up 0.04% at $1,811.56. Elsewhere, Silver futures down 0.82% to $25.440 per ounce, Platinum down 0.05% at $1102.03 per ounce, and Palladium up 0.13% to $2,633.50.

Crude Oil mix on Monday; Brent crude oil down 0.42% at $72.79 per barrel while U.S. West Texas Intermediate (CLc1) is up 0.07% at $72.92.

In the Cryptocurrency Markets, BTCUSD at 31847.98 up 0.22%, Ethereum at 1908.91 up 0.95%, Litecoin at 119.51 down 0.04%, at the time of writing.

TOP STOCKS TO WATCH OUT TODAY:

TELEFLEX Inc. up 3.753% at $390.32, GAP Inc. down 4.711% at $28.32, NVIDIA Corp. down 4.246% to $726.44, KLA Corp. down 3.467% to $293.22, BAIDU Inc. down 3.202% to $179.58, MICRO CHIP TECHNOLOGY Inc. down 2.685% at $133.76.

Economic news:

US: U.S. lawmakers trying to salvage a $1.2 trillion bipartisan infrastructure bill have dropped a provision to beef up tax enforcement, Republican Senator Rob Portman said on Sunday, setting aside a significant revenue-raising measure.

The provision, aimed at increasing Internal Revenue Service (IRS) collections, will instead likely be added to a separate budget “reconciliation” bill being pushed by Democrats as a vehicle for passing trillions of dollars more in spending and tax increases, Portman said on CNN’s State of the Union program.

President Joe Biden has said he wants to invest $80 billion in IRS technology and enforcement to increase collections of taxes by $700 billion over 10 years. The provision outlined in the infrastructure bill would account for around $100 billion of that larger goal, according to Democratic senators’ estimates.

The decision to exclude the IRS provision from the $1.2 trillion infrastructure bill comes as senators and the White House are trying to negotiate the final details of the package ahead of a key procedural vote planned for Wednesday.

Senate Majority Leader Chuck Schumer has said he wants to hold a “cloture” vote to meet the 60-vote threshold needed to end debate and allow the infrastructure bill to proceed to a final vote.

Eurozone: Britain will set out a plan on Monday to stimulate trade with 70 developing economies by lowering tariffs and simplifying rules, its latest push to promote freer global commerce after regaining control of its trade policy following Brexit.

The government will detail the Developing Countries Trading Scheme in a consultation document. The plan builds on an existing European Union scheme that Britain was part of before leaving the bloc at the end of last year and has kept in place while working on its new programme.

“Now the UK is an independent trading nation we have a huge opportunity do things differently, taking a more liberal, pro-trade approach that leads to growth and opportunity,” trade minister Liz Truss said.

The scheme seeks to further reduce the bureaucratic burden of trade between Britain and developing countries, as well as countries classed as low or lower-middle income such as Pakistan, Nigeria and Indonesia.

As well as reducing tariffs for goods coming into Britain, the scheme aims to simplify the “rules of origin” that determine where a product with a cross-border supply chain is made for taxation purposes.

Important Data: US 3-Month Bill Auction today at 11:30 previously which was 0.05%. JAPAN National Core CPI (YoY) (Jun) today at 19:30 this time estimated 0.2%, previously which was 0.1%. CHINA PBoC Loan Prime Rate today at 21:30 previously which was 3.85%. AUSTRALIA RBA Meeting Minutes today at 21:30.

TECHNICAL SUMMARY

GBPUSD