About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.
Market news and trade ideas on July 17
The market sentiment is mixed today as contradictory economic data from China and the USA this week showed that the recovery path will be bumpy and it will take a lot of time to reach pre-crisis levels. It erased the investors’ optimism based on successful vaccine tests. US retail sales came out better than analysts expected. They were 7.5%, while the forecast was 5.0%. However, jobless claims tuned out more by 50 000 than the forecast – 1.3 million people filed for unemployment benefits. The US dollar fell down after report, but then returned to previous levels.
Let’s look at the charts. EUR/USD bounced back from the key resistance at 1.1445. Now it’s moving upward to the resistance at 1.1415. If it breaks through this level, it may surge again to the recent high at 1.1445. Support levels are 1.1343 and 1.1280. Follow the EU Final CPI at 12:00 MT time and the US Consumer Sentiment at 17:00 MT time, the latter will have a huge impact on the market.
The S&P 500 reached the key resistance at 3 225, but failed to break it through. The move above will push the price to the next resistance at 3 300. Support levels are 3 135 and 3 110. The US consumer sentiment should define the further S&P movement.
Gold dropped dramatically and even broke through the lower trend line. It reversed from the support at $1 794 and crossed the key psychological mark at $1 800. It will meet soon the resistance at $1 810. Support levels are at $1 794 and $1 778.
Finally, let’s look at the USD/JPY. The pair has just crossed the support at 107.2. It's moving towards the next one at 107.0. Resistance levels are at 107.35 and 107.7. Follow the US consumer sentiment report at 17:00 MT time!
- The EU consumer price index will be released at 12:00 MT time.
- The governor of the Bank of England Andrew Bailey will speak at 13:00 MT time.
- The preliminary US comsumer sentiment will be published at 17:00 MT time! Follow the report!
Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!
The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!
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