What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
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.
- 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.
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.
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.
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.
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.
- The Canadian GDP will be released at 15:30 MT time. It will have a huge impact on the CAD. Stay tuned!
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!
Hong Kong stock index extended a decline sparked by China’s tech crackdown. Tesla posted better-than-expected results. Jump in!
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
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!