Last week was full of surprises! The US dollar plunged despite a better-than-expected retail sales report…
Here's what you need to know on July 14
The market sentiment deteriorated amid fresh US-China tensions. Countries have disputes over the Hong Kong and South China sea issues. Also, investors remain cautious as increasing virus cases may damage economic activity again. Stocks and risky currencies dropped, as well as gold. These days the yellow metal tends to move together with risk assets.
Nasdaq reached the all-time high yesterday, but then dropped dramatically after that. However, today it rose again as investors turned their attention to earnings reports this week. If Nasdaq breaks through the resistance at 10 680, it will clear the way towards the next resistance at 10 845. Support levels are 10 515 and 10 320.
Nasdaq is traded as CFD futures contract in MT4 and MT5. You need to choose NASDAQ-20U in order to open a position.
Moreover, the negative data from China came this morning. Trade balance turned out worse than analysts expected. It was 46 billion dollars, while the forecast was 58. As a result, USD/CNH surged. It will meet soon the resistance at the high of July 7 at 7.020. If it breaks it through it may jump towards the 200-day moving average at 7.045. Nevertheless, California imposed new restrictions on businesses as coronavirus cases rose. It may weigh on the US dollar in the long term. Look for support levels at 6.965 and 6.920.
Later the United Kingdom released the poor GDP data. It turned out 1.8%, while analysts anticipated 5.5%. It weighed on the British pound. GBP/USD is moving down towards the support at the intersection of 50- and 100-day moving averages at 1.2415. If it breaks it down, it will open doors towards the next support at 1.2300. Resistance levels are at the 200-day moving average at 1.2680 and at 1.2750.
Let’s take a look at gold. It has just crossed the key psychological mark at $1 800. Now it’s moving towards the next resistance at $1 807. If XAU/USD crosses this level, it may surge to $1 815. Support levels are $1 794 and $1 778.
- The European industrial prodcution will be released at 12:00 MT time.
- The US CPI will be reported at 15:30 MT time. Stay tuned!
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 Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.