ECB report is in focus
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
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.
Fundamental factors
- Traders shrugged off increasing virus cases throughout the world. By the way, 12 million infections were confirmed, while 3 million of them were in the USA.
- As long as central banks will support the economy with stimulus measures, markets will rally, according to Bloomberg.
- US crude oil inventories came worse than analysts expected. They have risen by 5.7 million barrels since the last week, while the forecast was the 3.2 contraction. Nevertheless, the oil market’s reaction was really modest.
- The Swiss unemployment rate soared less than anticipated: 3.3% against the forecast for 3.6%. the CHF surged.
- The New Zealand’s business confidence improved. It has contracted by 29.8% since the last month, while the previous indicator decreased by 34.4%.
- The German trade balance came better than expected. It rose by 7.6 billion dollars, that is 1 billion more than analysts predicted.
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Technical tips
EUR/USD
EUR/USD has been moving up since yesterday. It has broken through two strong resistance levels at 1.1300 and 1.1330, which turned out to support levels. Now it is in a correction mode. It’s widely anticipated that it will bounce back from the support at 1.1330 and then it may surge higher to the high of June 11 at 1.1390.
Gold
Gold has been performing greatly since yesterday. It has passed the key resistance at $1 800. Today it tends to continue further its way up to $1 818. Look for support levels at $1 807 and $1 800.
USD/CHF
The Swiss Franc gained on the encouraging data from Switzerland. The pair is moving down towards the support at 78.6% Fibonacci retracement level at 0.9337. If it crosses it, it may fall even lower to the next support at the low of March 9 at 0.9250. Anyway, look for resistance levels at 61.8% Fibo level at 0.9460 and at 0.9524.
GBP/USD
The British pound is really on fire. It has been climbing up for the 8 day straight. It will meet the strong resistance at the 200-day moving average at 1.268. If it manages to break through this strong barrier, it will jump to the high of June 10 at 1.275. Support levels are 1.2600, 1.2413 and 1.2300.
Upcoming events:
- Eurogroup meetings will be held during the day. Follow news as it may make the Euro volatile.
- The US unemployment claims will be published at 15:30 MT time. Don’t miss out! It will change the whole market sentiment.
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Market outlook for this week
Jump in to know the key market events and trading ideas for this week!
Market sentiment slightly improved
USD’s rally takes a pause, while riskier assets are modestly rising.
Latest news
USD strengthened as optimism waned
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
Stocks up, USD down
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
Lots and lots of PMIs on Friday
PMI reports from the EU, the UK, and the USA will be released during the day!
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