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GBP/USD WEEKLY OVERVIEW

Pound dipped to a two week low on Monday over the Bank of England warning regarding hike in interest rates. Major companies squeezed their investments and consumers observed cautious reaction on their spending policy. Pound traded as low as $1.2 855 on Tuesday its weakest since June 28, 2017 before inched up to $1.2878 showing sluggish output in UK construction, manufacturing and industrial sector. On Tuesday pound again dipped against the dollar to low as $1.2832 and later edged up back to $1.2854 as dollar fell after US President Donald Trump’s son released an email about Russian conspiracy case during election campaign of Donald Trump in recent US Election. However pound was up 0.4% at $1.2925 on Wednesday. It is hoped that political uncertainty due to Brexit issue may affect negatively to pound in near future too.

TECHNICAL STUDY USING LUTFI MAGNET THEORY (GBP/USD)
TIME
S3
S2
S1
MAGNET POINT
R1
R2
R3
WEEKLY
1.2666
1.2765
1.2828
1.2927
1.2990
1.3089
1.3152
GBP/USD
OPEN
HIGH
LOW
CLOSE
CHANGE
WEEKLY
1.2884
1.2969
1.2812
1.2960
-0.58
EUR/USD WEEKLY OVERVIEW

On Wednesday dollar fell against the euro after release of the remarks of Federal Reserve Chair Janet Yellen that US strong economy can absorb further gradual hike in interest rates. The euro rose to a 14 month high of $1.1479.

TECHNICAL STUDY USING LUTFI MAGNET THEORY (EUR/USD)
TIME
S3
S2
S1
MAGNET POINT
R1
R2
R3
WEEKLY
1.1199
1.1255
1.1328
1.1384
1.1457
1.1513
1.1586
EUR/USD
OPEN
HIGH
LOW
CLOSE
CHANGE
WEEKLY
1.1399
1.1489
1.1371
1.1481
-0.71
USD/JPY WEEKLY OVERVIEW

The dollar inched up to a two month high against yen on Monday. US unexpected job growth rate and sound manufacturing data combined with the US yields are the root cause for further depreciation of yen. It is hoped that dollar bulls to target 115 yen in few weeks. The US dollar was up 0.19% to 114.1 yen after hitting 114.29 yen its highest since May 11, 2017. The yen is also under pressure due to unexpected drop in Japanese big machinery order in the month of May 2017 on Monday Bank of Japan Governor said the Central Bank’s resolve to maintain its massive stimulus program until inflation is stably above its 2% target. On Thursday dollar was 0.2% stronger against the yen.

TECHNICAL STUDY USING LUTFI MAGNET THEORY (USD/JPY)
TIME
S3
S2
S1
MAGNET POINT
R1
R2
R3
WEEKLY
110.20
111.06
112.47
113.33
114.74
115.60
117.01
USD/JPY
OPEN
HIGH
LOW
CLOSE
CHANGE
WEEKLY
112.12
114.50
112.11
114.40
-2.03
GOLD WEEKLY OVERVIEW

As a result of strong economic data from USA and Germany gold prices fell on Monday to their lowest since March 2017 on the strong assumption that US Central Bank will raise interest rates in USA. It is not out of place to mention here that gold is very sensitive to rising rates of interest as they push up bonds yield in the country by increasing the opportunity cost of holding non-yielding bullion. They also tend to boost the dollar in which gold is priced. On Monday spot gold was down 0.3% at $1209.47 an ounce, whereas gold futures for August delivery were 0.1% down at $1209 an ounce. On Wednesday gold rose to spot gold rate 0.3% at $1220.58 an ounce whereas US gold futures for August delivery were at $ 1219.80 an ounce. However on Thursday gold steadied as weaker dollar and less US yields support the gold prices. As weaker US currency makes dollar priced gold cheaper for non US investors. Spot gold rates were $1219.70 an ounce whereas US gold futures for August delivery were $ 1218.80 an ounce.

TECHNICAL STUDY USING LUTFI MAGNET THEORY (GOLD)
TIME
S3
S2
S1
MAGNET POINT
R1
R2
R3
WEEKLY
1160.7
1183.6
1196.6
1219.6
1232.7
1255.6
1268.7
USD/JPY
OPEN
HIGH
LOW
CLOSE
CHANGE
WEEKLY
1242.3
1242.6
1206.6
1209.7
2.62
OIL WEEKLY OVERVIEW

On Monday oil prices slightly edged up whereas on Tuesday oil prices climbed more than 1% on reports that US crude stocks fell 2.9 million barrels. On Thursday oil prices rose 1.3%. Brent crude traded at $48.42 a barrel 1.42% up. It is pertinent to note China remained biggest importers of oil 8.55 million barrels per day in the first half of this year. On the other hand, US oil production has jumped to 9.34 million barrel per day. Saudi Arabia oil production up to June rose to 10.07 million barrel per day. It is expected that without significant fall in oil inventories and production issues from OPEC & non OPEC countries, oil could drop below $40 per barrel.

TECHNICAL STUDY USING LUTFI MAGNET THEORY (Oil)
TIME
S3
S2
S1
MAGNET POINT
R1
R2
R3
WEEKLY
39.47
41.62
42.93
45.08
46.39
48.54
49.85
USD/JPY
OPEN
HIGH
LOW
CLOSE
CHANGE
WEEKLY
46.08
47.24
43.78
44.23
4.01
ISMAR Financial – MUJEEB UR REHMAN KHAN – Director, Corporate Affairs

DISCLAIMER: This report has been prepared by ISMAR financial. The information and opinions contained herein have been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith. Such information has not been independently verified and no guaranty, representation or warranty, express or implied is made as to its accuracy, completeness or correctness. This document is only for Reading information.

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