How Much Did the US Economy Grow in Q2?
What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
Latest forex news on July 22
Fundamentals
- 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.
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Technical tips
EUR/USD
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.
S&P 500
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
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.
GBP/USD
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.
Upcoming events:
- 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.
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