The Turkish Lira is recovering this morning after an unsuccessful coup attempt which shook the country and the local currency.

State officials tried yesterday to reassure investors before the opening of the trading day this morning, and promised that the central bank will provide the liquidity required for business entities.

After the announcement that the UK interest rate will remain unchanged, the English pound jumps by 1.5% against the US dollar!

Today at 12:00 the UK’s central bank will deliver the interest rate decision for the first time since “brexit”.
The market is expecting that the bank will choose to cut interest rates by 0.25%.

The Japanese Yen continues to weaken against the US dollar by 0.2% to a rate of 104.7 yen to the dollar.

The global stock market erased all the falls that followed the announcement of the British exit from the EU

Wall Street stock markets traded in a positive trend for the fourth day in a row and the Dow Jones and S&P 500 continue to break records, in anticipation of the periodic report of the Federal Reserve on the state of the US economy, and also because of an encouraging results of US financial season which started this week.

The US import prices climbed by 0.2% in June from the previous month following the increase in fuel prices.
This is the fourth consecutive month in which the imports prices have increased.

Japan cuts its growth and inflation.

The annual GDP (fiscal year that starts in April) is expected to be only 0.9% – compared with a previous forecast of 1.7%.
The inflation is expected to be only 0.4% – compared with the previous forecast of 1.2%.

For the first time in 7 years: Analysts expect UK interest rate cut

Tomorrow (Thursday) at 12:00 the British central bank will deliver his first interest rate announcement since his dramatic decision to leave the EU.
UK interest rate remains at 0.5% since March 2009.

Most companies plan to reduce their investments in the UK

Unpleasant economic news for Britain: from a poll conducted by Credit Suisse show that two-thirds of companies said that they are planning to postpone or reduce their investments in the UK in wake of the decision of Britain to quit the EU.

USD/JPY

On a weekly chart we can see that 4 weeks ago the pair broke down a support area, around the level of 105.00.

So far this week, the pair went up to retest what was a support area and now should act as a resistance.

On 4 hours chart we can see a closer look of this move and how so far the level of 105.00 is acting as a strong resistance.

There is a bearish divergence at the histogram of the MACD, the last height of the histogram is higher than the previews ones together with the average of the RSI at an overbought level of 80.

For Forex traders:
Sell between the levels of : 105.00 – 104.30.
Stop loss point : 105.50.
Take profit point : 98.00.

For Binary options traders:
A put option between the levels of : 105.00 – 104.30.
Expiry time : August 30