What to Trade on August 22–26?
How Energy Crisis Affects German PMI August 23, 2022, 10:30 GMT+3 Germany will publish Flash Manufacturing PMI data on Tuesday, August 23, at 10:30 MT time (GMT+3)…
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.
Watch our daily forex trading plan!
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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Latest news
Post-Fed Releases for USD & CAD Traders
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
FED and BOE Make Another Attempt to Beat Inflation
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.
