The market sentiment improved amid the slowdown in virus cases. Let's have a closer look at the AUD, S&P 500, gold and the GBP.
5 important events this week will bring us!
- Speech by the ECB President Mario Draghi (Mon, 16:00 MT (13:00 GMT) time) – If the ECB president is hawkish, the EUR will be supported;
- CB consumer confidence for the US (Tue, 17:00 MT (14:00 GMT) time) – Higher-than-expected figures will push the USD up;
- RBNZ rate statement (Wed, 5:00 MT (2:00 GMT) time) – Analysts anticipate the Reserve bank of New Zealand to keep its interest rate unchanged at 1%. Traders will pay attention to the outline of the statement. If the RBNZ is hawkish, the NZD will rise.
- US final GDP (Thu, 15:30 MT (12:30 GMT) time) – If the actual figures are higher than the forecasts, the USD will go up.
- US core durable goods orders and personal spending (Fri, 15:30 MT (12:30 GMT) time) – Higher-than-expected figures will boost the USD
- After the trade talks between the US and China last week, we heard some positive comments on that matter from both sides.
- Oil prices jumped on the news that the reparation of the Saudi plant would likely take months.
- The EU’s Donald Tusk will meet the UK Prime Minister Boris Johnson this week. However, judging by the tone of the Prime Minister, he does not expect any breakthrough this week. Also this week the Supreme Court will rule on Boris Johnson’s suspension of Parliament. The uncertainties affect the GBP.
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…