Last week was full of surprises! The US dollar plunged despite a better-than-expected retail sales report…
Friday Trades: EUR/USD, USD/JPY, and Gold
- The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
- Today, traders await PMI reports from the UK, US, and EU. Purchasing Managers’ Index (PMI) is an indicator that measures the economic health of the manufacturing and services sectors. The better-than-expected PMI report tends to push the currency of this country up.
- Earnings season goes on. Intel, Twitter, and AT&T released strong earnings results for the second quarter yesterday. Today, American Express will unveil its Q2 data before the stock market opens.
- The dovish ECB pressed down the EUR. Its President Christine Lagarde said the bank learned from the mistakes of past crises and won’t withdraw emergency support too early.
- US unemployment claims unexpectedly rose yesterday. As a result, the USD’s rally up stopped.
- Cryptocurrencies are recovering. Bitcoin has approached $33,000, while Ethereum is advancing to $2100.
EUR/USD is moving inside the descending channel. The breakout below the 1.1750 support level will press the pair down to the key psychological mark of 1.1700. However, if the euro manages to cross the recent high of 1.1780, it will jump to the 50-period moving average of 1.1800.
USD/JPY has reversed up from the lower trend line. If the pair crosses the high of July 14 at 110.70, it will jump to the psychological mark of 111.00. The downside is limited by the 50-day moving average of 110.00 and the lower trend line.
Gold is trading just below the 38.2% Fibonacci retracement level of $1815. If the yellow metal manages to break this level, it may jump to the 200-day moving average of $1825. On the flip side, the move below the support zone of the 100-day moving average of $1795 and the 23.6% Fibo levels of $1790 will open the doors to $1775.
Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
The volatility that the markets experienced last week promises the second tidal wave! What should your favorite assets anticipate during the first week of February?
The US Bureau of Labor Statistics will announce average hourly earnings, nonfarm employment change (NFP), and the unemployment rate on July 8, at 15:30 MT time.
The Federal Open Market Committee, a committee within the Federal Reserve, will reveal a detailed record of the central bank’s last meeting on July 6 at 21:00 MT.
The Reserve Bank of Australia will announce its cash rate and make a statement about future rate policy on Tuesday, July 5, at 07:30 MT.