Hong Kong stock index extended a decline sparked by China’s tech crackdown. Tesla posted better-than-expected results. Jump in!
How to trade on July 13?
Risk-on is back on the market. Riskier currencies and stocks are in favor. Gold is rising too as investors try to hedge their risk investments. Moreover, the earnings season has started this week. It will make the stock market really volatile as it gives really important data about how companies have been performing amid the coronavirus outbreak. Today Pepsico will release its quarter earnings per share report. The forecast is 1.25. If the data comes better than expected, Pepsico will increase its value, otherwise – decrease. Most analysts believe that earnings per share can beat all estimates as most countries have already reopened. That in turn will improve the overall market sentiment and drive riskier assets further to the upside.
However, new virus cases continue increasing in the USA. Florida recorded the highest daily rise on Sunday since the coronavirus pandemic started. Investors shrugged off that news as there are optimistic developments on the coronavirus vaccine. For instance, human trials have begun in Australia in Queensland.
So, let’s look at the charts. EUR/USD is rising up, but it will meet soon the resistance at the 1.1345. If it crosses it, it will surge higher to the high of July 9 at 1.1366. Anyway, look for support levels at 1.1300 and 1.2690. The current risk-on mood will drive the pair upward in the short term. Nevertheless, be cautious as the USA imposed new tariffs on French imports in response to the French digital services’ tax. If the European-American tensions deteriorate, it may weigh on the Euro.
Gold keeps rallying. It has just crossed the resistance at $1 807. Now it’s moving towards the next resistance at the high of July 9 at $1 815. Support levels are $1 800 and $1 794.
GBP/USD is moving upward. It will meet the strong resistance at the 200-day moving average at 1.268. If it breaks it through, it may jump further to the next one at the high of June 10 at 1.275. Support levels are at 1.2600 and 1.2415. Follow the report of the Bank of England today at 18:30 MT time. If its governor Andrew Bailey gives optimistic guidelines, it will push the British pound higher.
The S&P 500 has finally escaped the triangle. It has been trading inside of it for almost a month. If it crosses the resistance at 3 225, it will open doors to the all-time high at 3 390. Support levels are 3 110 and 3 025.
- Pepsico will release its querter earnings report.
- The Bank of England will report today at 18:30 MT time. Stay tuned!
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.
PMI reports from the EU, the UK, and the USA will be released during the day!
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!
What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!