What drives the market on July 8?
The market takes breath after the long rally. What opportunities do traders have today?
Risk-off is back. All eyes on the US data.
The market sentiment deteriorated as the USA and some other countries are suffering from the new virus resurgence. Investors worry that the economic reopening may be delayed.
Fundamental factors
- Australia has recorded its largest peak in COVID-19 cases since April. The US states such as Florida and California exceeded daily highs.
- Investors are concerned that governments may impose strict restrictions and lockdowns again. That may lead to devastating results for most businesses. Stocks dropped on that worries.
- Margie Patel, portfolio manager at Wells Fargo Asset Management, said that stocks just need to take a breath and then they may continue rallying.
- The USA revealed new tariffs on export goods from the Eurozone. The EU considers to ban the entry for Americans. The US-EU tensions began to heat up.
- The IMF lowered its guidelines for the global economic recovery and predict deeper downturn and slower rebound.
Technical tips
S&P 500
S&P 500 dropped dramatically, but the 200-day moving average stopped it at the 3,020 level. If it manages to cross this line, it will open doors towards the key psychological mark at 3,000. Follow the release of the US GDP and unemployment claims at 15:30 MT time. It will be the strong catalyst for the further falling, if the data comes worse than expected. Otherwise, if the market catches the risk-on stimulus after the report, stocks may soar. In this case, look for resistance levels at 3,110 and 3,225.
XAU/USD
Gold is headed to new highs. Market participants found it the most attractive safe-haven asset amid the current uncertainty. The US dollar gains too, but gold still prevails. If it crosses the resistance at 1,775, it will surge to 1,800. Support levels are 1,717 and 1,700. Again, the US data will have a huge impact on gold. Don’t miss out.
AUD/USD
AUD/USD has tumbled significantly as Australia suffers from the largest high in coronavirus cases. Look for the break below the 0.6830 level, as the pair may fall even deeper to the next support at 0.6800. Resistance lines are the 50-day moving average at 0.6890 and the high of June 23 at 0.6920.
Upcoming event:
The US GDP and unemployment claims at 15:30 MT time will make the market really volatile. Follow the report!
Similar
The US labor market is in focus again
The United States will publish a weekly update on unemployment claims on July 9, at 15:30 MT time.
How to trade on July 7?
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
Latest news
Risk-on is back. Market news and trade ideas on July 9
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
GOLD: the era of $1 800
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canadian job data: an attractive release for trading
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.
Deposit with your local payment systems
