Hong Kong stock index extended a decline sparked by China’s tech crackdown. Tesla posted better-than-expected results. Jump in!
Pound rallies, Treasury yields are at one-year record high
- 10-year Treasury yields rose to the highest level in almost a year. Some investors concern about rising yields and have doubts over the reflation trade, which can push yields up to a level that can hit risk appetite.
- UBS: “We are still in a risk-on environment. Everybody is playing out the outlook for better economic growth, the outlook for more fiscal stimulus. It’s normal that nominal yields are trending higher, equities are also trading high, and also commodities based on a better economic outlook”
- The Bill & Melinda Gates Foundation Trust exited positions in Alibaba and Uber and halved the stake in Apple.
- Bitcoin dropped from record highs on Monday. According to JPMorgan: a serious risk to bitcoin could be a “sudden loss of confidence” in Tether (USDT).
Gold is trading at the lowest levels for this year - below $1 800.
Riskier currencies such as the GBP, NZD, and AUD skyrocketed to multi-year highs.
Oil tries to rebound from its previous week's losses.
EUR/USD has approached the resistance at both the 50-day moving average and the 50.0% Fibo level at 1.2150. It will have struggles to cross it, but if it manages to do so, the way up to the 61.8% Fibonacci level at 1.2200 will be clear. Support levels are 1.2100 and 1.2030.
The pound’s rally is unstoppable. After the breakout above 1.4000, GBP/USD has taken a break. If it manages to jump above the intra-day high of 1.4050, the doors towards 1.5000 will be open. Support levels are at the recent lows of 1.4000 and 1.3950.
USD/JPY is moving inside the ascending channel. The way to the psychological mark of 106.00 is clear. If it breaks this resistance, it may rise to the next round number of 106.50. Support levels are at Friday’s low of 105.40 and 105.00.
Gold is getting closer to the key psychological mark of $1 800. It’s unlikely to cross it on the first try, but if it does, the way up to the high of February 16 at $1 825 will be clear. On the flip side, the move below the recent low of $1 775 will drive the yellow metal to the next support of $1 760.
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
PMI reports from the EU, the UK, and the USA will be released during the day!
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!
What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
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!