Market Outlook For February 21-25
Last week was full of surprises! The US dollar plunged despite a better-than-expected retail sales report…
Market Wrap: Weak Dollar, Strong NZD and Gold
What you need to know on July 14
- The earnings season has started strong! PepsiCo has published better-than-expected Q2 earnings results and surged to record highs. US banks: JPMorgan and Goldman Sachs beat earnings per share forecasts, but the stocks edged lower. Why? Banks have severe headwinds: drop in fixed-income trading, rising costs, and economic uncertainty.
- Today, Bank of America, Wells Fargo, and Citigroup will reveal their financial results.
- US inflation came out greater than expected and pushed the USD up. It refreshed the talks about when the Fed can start tightening the policy. Traders will await eagerly the speech of Fed’s Powell this week.
- The NZD rocketed after the Reserve Bank of New Zealand claimed it would end quantitative easing this month. It surprised investors and led them to price in an interest-rate hike as early as August.
Technical outlook
EUR/USD keeps moving inside the descending channel. Yesterday, the US inflation jump pushed the USD up and thus pressed EUR/USD down significantly. Today, the pair is recovering the losses. It may rise to the 50-period moving average (MA) of 1.1835, but shouldn’t cross it on the first try. If it manages to do so, it may soar to the 100-period MA of 1.1880. Support levels are yesterday’s low of 1.1770 and 1.1750.
Gold keeps attacking the 38.2% Fibonacci retracement level of $1815. If the price jumps above this threshold, it should rise to the 50% Fibo level of $1833. It may happen as the US dollar is quite weak today. On the flip side, if gold fails to cross the $1815 barrier, it will drop to the 23.6% Fibo level of $1790.
NZD/USD surged above the psychological mark of 0.7000 due to RBNZ’s hawkish surprise. The pair is likely to rise to the 200-day moving average of 0.7070, where it should stop for a while. The breakout above the 200-day MA will push the pair up to the next round number of 0.7100. Support levels are 0.7000 and yesterday’s low of 0.6930.
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Latest news
What’s New with Australian Unemployment Rate?
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
Can the UK CPI surprise?
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Retail Sales Update
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.
