2nd Greek Bailout Vote Passes, Gold & Oil Continue their Decline

The Greek government approved on Thursday some reform-related demands of creditors in order to stay in the Eurozone. The televised voting showed 151 lawmakers supported Prime Minister Alexis Tsipras in passing the second tranche of policy measures. Meanwhile, in his speech in Frankfurt on the same day as the Greek vote, Bundesbank President Weidmann commented that the ESM is only able to provide credit to solvent states.

In the United Kingdom, the MPC voted as expected (no change) in relation to the Official Bank Rate and Asset Purchase Facility. On the other hand, the RBNZ reduced its Official Cash Rate to 3 percent from 3.25 percent as expected on Thursday. The central bank chief expects the New Zealand Dollar to depreciate further amidst weakness in commodity prices. Governor Wheeler further noted that further easing in rates is “likely”.

In other news, Canada’s Wholesale Sales dipped 1 percent in May, while previous reading revised down to 1.7 percent. Retail Sales, both the main and core readings, were higher than anticipated.

New Zealand Trade Balance posted a NZD60 million deficit in June, in contrast to a NZD100 million surplus expected. The previous reading was revised higher to NZD370 million.

US Existing Home Sales came in slightly higher than forecast at 5.49 million in June, but May‘s reading was revised down to 5.32 million from 5.35 million. New Home Sales only gained 482,000 in June compared to 543,000 expected. May’s reading was similar with April’s at 517,000.

Jobless Claims for the previous week came in at 255,000 compared to the 279,000 forecast.

Commodities

Gold created a $57 range this week as it posted its fifth straight weekly downside track and reaching its lowest price in over five years. The next critical support now comes at $1000.

Oil went on post its sixth weekly decline and it broke the $50 level with confidence. The chance for a move to create a triple bottom has therefore increased and we could expect that this coming week. Sellers will now target the $40 to $44 area.

Currency Pairs

EURUSD managed to post some gains this week after pulling close to the 1.0800 level again. Buyers still need to prove their might by forcing through the 1.1450 resistance area. That area is critical if bulls want to revisit the 1.2000s again.

GBPUSD posted an inside bar this week as the 1.5500 level continues to attract buyers and sellers on both sides. Buyers have a slight upper hand here as long as they can maintain a good support around 1.5500. Next target area is 1.5900.

USDJPY posted below-average weekly activity this week after making a strong showing in the past two weeks. Sellers entered the fray around the 124 level, keeping a lid on growing confidence of the buyers. The June 5 high below 126 is the next target.

 The Week Ahead

The overall news activity for this week would be lower than average as July draws to a close.

Monday will showcase Germany’s Ifo Business Climate; Eurozone M3 Money Supply; and US Durable Goods Orders.

Tuesday will remain quiet with UK’s Prelim GDP; Canada’s RMPI and IPPI; and US Consumer Confidence and Richmond Manufacturing Index.

Wednesday will have Japan’s Retail Sales; Germany’s GfK Consumer Climate; UK Net Lending to Individuals and Mortgage Approvals; US Pending Home Sales, and Fed Rate Announcement and Statement.

Thursday will offer more activity with Australia’s Building Approvals and Import Prices; Germany’s Prelim CPI and Unemployment Change; Spain’s Flash CPI and Flash GDP; US Unemployment Claims, Goods Trade Balance, Advance GDP, and Advance GDP Price Index.

Friday will end the week with Japan’s Household Spending, Tokyo Core CPI, and Jobless Rate; New Zealand’s ANZ Business Confidence; Australia’s PPI; Germany’s Retail Sales; France’s Consumer Spending; Eurozone CPI Flash Estimate and Jobless Rate; Canada’s GDP; US Employment Cost Index, Revised UoM Consumer Sentiment, and Chicago PMI.

About Jessica

Jessica has been a trader in the forex market for the last decade. She specializes in technical analysis and writes for several forex blogs about the topic.