Main market movements on July 31

Main market movements on July 31

The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.

Fundamentals

  • The US advance GDP dropped by 32.9%, while the forecast was the 34.5% decrease. It revealed the largest decline on record, showing the devastating damage from the coronavirus. The fresh resurgence in the country forced the government to stop reopening plans and impose new support measures.
  • Today the Chinese manufacturing PMI has climbed by 51.1 this month, that marked the industry expansion.
  • Also, the Japanese unemployment rate came out 2.8%, that was better than the analysts’ forecast of 3.0%.
  • The German preliminary GDP turned out worse than anticipated. It slumped by 10.1% while the forecast was the 9.0% contraction.
Watch our daily forex trading plan!

Techncial tips

EUR/USD

Let’s look at the EUR/USD chart. Despite the negative German GDP, the pair has reached the high level unseen since May 13, 2018 at 1.1900. If the pair breaks through this level again, it may surge even higher to the key psychological mark at 1.2000. On the flip side, if it moves below the 61.8% Fibonacci level at 1.1820, it will open doors towards the next support at 1.1790.

EURUSDH4.png

S&P 500

The S&P 500 gained as big tech stocks such as Apple, Amazon, Facebook and Google surged higher after their earnings reports beat all estimates. The stock index bounced off the resistance at 3 270 and modestly contracted. The move above this level will clear the way to the next resistance at 3 325. Support levels are at 3 210 and 3 190.

S&P500Daily.png

Gold

Gold has just crossed the recent high at $1 970. Fears over the rising virus cases and the overall economic uncertainty have added tailwinds to the yellow metal. Now it’s moving towards the all-time record at $1 980. If it manages to cross it, it may surge to the key psychological mark at $2 000.

XAUUSDH4.png

GBP/USD

GBP/USD has been edging up for the 11th day in a row! It’s approaching the 100% Fibonacci level at 1.3200. If it crosses it, it can jump to the high of December of the last year at 1.3325. Support levels are at 1.2900 and 1.2815 at the 78.6% Fibo level.

GBPUSDDaily.png

Follow news:

  • The Canadian GDP will be released at 15:30 MT time. It will have a huge impact on the CAD. Stay tuned!

Check the economic calendar

LOG IN

Similar

US earnings in January 2021: what you need to know
US earnings in January 2021: what you need to know

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.

USD starts the week with gains
USD starts the week with gains

Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.

ECB report is in focus
ECB report is in focus

The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time. 

Latest news

How to trade ahead and after BOC report?
How to trade ahead and after BOC report?

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.

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

Manager will call your number

Correct number

Your request is accepted

Manager will call your number

Next callback request for this phone number
will be available in {time}

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera