Geopolitical News Influence Markets
Russian-Ukrainian conflict is influencing every economic aspect…
How to trade on August 4?
Fundamentals
- The current slowdown in new virus cases in the USA improved the market sentiment. Nasdaq surged to fresh highs.
- Disputes between Republicans and Democrats over the US fiscal stimulus weighed on the greenback. In fact, unemployment benefits expired last week. Also, Sino-American tensions are escalating. The US offered China two choices. China may sell TikTok’s operations to Microsoft or any other American company. Otherwise, the USA will close TikTok’s US business by September 15.
- The Reserve Bank of Australia left cash rate unchanged at the record low of 0.25%. Officials mentioned that the recovery will be uneven and bumpy with the coronavirus outbreak in Victoria. Also, the central bank will resume its bond buying further.
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Technical tips
AUD/USD
Let’s look at the AUD/USD chart. It has bounced from the support line at 0.7080. Now it’s approaching the resistance at 0.7145. If it crosses it, it may surge to the high of July 29 at 0.7185. On the flip side, if it falls below the support at 0.7080, it will open doors towards the next support at 0.7020.
S&P 500
The S&P 500 has just crossed the resistance at 3 270. Now it’s getting closer to the high of January 23 at 3 325. If it breaks through this level, it may climb up to the all-time high at 3 390. However, the move below the support at 3 270 will drive the price to the low of July 28 at 3 210.
Gold
Gold is stuck in a range between $1 965 and $1 980. If it escapes above this range, it may jump to the widely expected level at $2 000. Otherwise, the move below will push gold to the low of July 30 at $1 950.
GBP/USD
Finally, let’s get a closer look at GBP/USD. The pair reversed after falling down for two days straight. It had a pullback from the key psychological mark at 1.3000. If it breaks through the resistance at 1.3100, it may surge to the high of July 31 at 1.3155. Support levels are at 1.3000 and 1.2900.
Follow further news:
- The Canadian manufacturing PMI will be released at 16:30 MT time! Stay tuned!
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Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
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The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Will the UK and US Cope with Inflation?
Every week we expect many interesting events that can shake the market.
