Last week was full of surprises! The US dollar plunged despite a better-than-expected retail sales report…
What drives the market on August 10?
The market has started the week with a mixed sentiment. The US dollar is holding its gains, while the S&P 500 is edging higher.
- On the one hand, the ongoing disputes between Democrats and Republicans add uncertainty to the market. They can’t reach an agreement over the fiscal stimulus package. The delay of announcing may weigh on the US economy. Another reason, which may deteriorate the overall sentiment, is US-China trade talks, which are scheduled for this week. If countries don’t make a deal, safe-havens will be boosted.
- On the other hand, the NFP report pleasantly surprised investors. It came out better than expected. Non-farm payrolls rose by 1.76 million, while the forecast was 1.53 million. Average hourly earnings and unemployment rate beat all estimates too.
Let’s look at the EUR/USD chart. If it crosses the key psychological mark at 1.1800, it may climb up to the 61.8% Fibonacci level at 1.1820. Otherwise, if it falls below the support at 1.1750, which it has touched several times, it may drop even deeper to 1.1700.
The S&P 500 is approaching the all-time high at 3 390. It has been rising for 9 consecutive days. Watch out support levels at the lows of the beginning of this year at 3 325 and 3 270.
Gold is trading near the $2 030 level. The move above $2 050 will push the yellow metal to the record high at $2 075. On the flip side, if the price drops below $2 025, it may fall even deeper to the key psychological mark at $2 000.
Finally, let’s look at the USD/JPY. The pair is edging higher on the positive NFP data. If the price jumps above 106.00, it will open doors towards the high of August 3 at 106.30. Support levels are at 105.70 and 105.40.
Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
The volatility that the markets experienced last week promises the second tidal wave! What should your favorite assets anticipate during the first week of February?
The US Markit will publish Flash Manufacturing and Flash Services PMIs (purchasing managers' indices) on June 23 at 16:45 GMT+3.
The Fed Chair Jerome Powell will testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee on June 22-23 at 17:00 GMT+3.
Canada will publish Retail Sales and Core Retail Sales on June 21 at 15:30 GMT+3.