We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.
Latest forex news on July 22
- The market sentiment is risk-on today. The US dollar continues waning, while riskier assets and precious metals are rising. Nasdaq surged to the record high at 10 860.
- The risk appetite boosted by the optimistic news from biotech companies. AstraZeneca, Pfizer, and Synairgen revealed successful vaccine tests and effective coronavirus treatments.
- The USA is going to follow the EU example on supporting the economy. Recently the EU members agreed on a 750-billion-euros recovery fund. US Treasury Secretary Steven Mnuchin and Speaker of the House Nancy Pelosi were discussing the further fiscal stimulus package.
- Australian preliminary retail sales rose by 2.4% in June. It was lower than in May, when sales grew by 16.9%. However, the AUD is climbing up on the current risk-on mood.
EUR/USD surged higher on the positive news on the EU recovery fund and vaccine promising results. It reached the level unseen since January 6, 2019 at 1.1530. However, it has showed some weakness recently. It may meet the support at the key psychological mark at 1.1500. If it falls below that level, it will reach the next support at the low of July 21 at 1.1440.
The S&P 500 surged higher and reached the 3 250 level. It may meet the resistance at 3 325. If it breaks it through, the stock index may increase to the all-time high at 3 390. Support levels are at the low of July 16 at 3 190 and at the 200-day moving average at 3 045.
Gold reached rates unseen since September 1, 2011 at $1 860. These days it tends to rise together with stocks. Support levels are at $ 1 840 and at $ 1 815.
The risk-sensitive British pound surged but then closed in red. According to the Telegraph, there are no developments in Brexit talks. The breakthrough is only expected at the year-end, when the transition period expires. Let’s look at the daily GBP/USD chart. If the price breaks the high of June 10 and the 78.6% Fibonacci level at 1.2816, it will jump higher to the key psychological mark at 1.300. Otherwise, if it falls below the support at the 200-day moving average at 1.2700, it may plummet even deeper to the next support at 61.8% Fibo level at 1.2520.
- The Canadian CPI will be published at 15:30 MT time. Don't miss out!
- Follow the US crude oil inventories report at 17:30 MT time.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
Jump in to know the key market events and trading ideas for this week!
The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
USD’s rally takes a pause, while riskier assets are modestly rising.