Today traders await the European Central Bank to make a policy statement at 14:45 MT (GMT+3).
What drives the market on August 12?
The US dollar edged higher, while gold dipped down. Let’s discuss main news and market movements in detail.
- The day started with the monetary policy statement from the Reserve Bank of New Zealand. The central bank increased asset purchases from 60 billion to 100 billion New Zealand dollars, releasing a dovish statement. The New Zealand dollar slumped after the report. In addition, new cases rose on the country, that forced the government to impose stricter restrictions.
- Moreover, the US talks over the fiscal stimulus package continue. Even Donald Trump’s executive orders didn’t speed up the agreement between Democrats and Republicans. New infections surged in California. Deaths reached the highest level since June of 1 400, according to yesterday’s reports. The growth of US bond yields underpinned the US dollar and weighed on gold. The such a massive sell-off in gold also happened because of profit takers.
Let’s look at the chart. If NZD/USD falls below the support at 0.6530, it may fall even deeper to the next strong support at 0.6400, which the pair failed to break in July. If it jumps above the resistance at the high of July 9 at 0.6600, it will open doors towards the next resistance at 0.6700.
EUR/USD reversed from the support at 1.1715. If the price breaks through the resistance at 1.1750, it will surge to the key psychological mark at 1.1800. Support levels are at 1.1715 and 1.1700.
Let’s move on to gold. It was falling down sharply, but bounced off the support at $1 875. If it crosses $1 930, it will clear the way towards the key psychological mark at $1 950. Support levels are at $1 875 and $1 800.
The British pound surged higher after the better-than expected GDP release. It turned out 8.7%, while the forecast was 8.1%. If GBP/USD breaks out the high of August 7 at 1.3050, it will surge to 50 moving average at 1.3090. Support levels are 1.3020 and 1.2980.
- The US CPI will be out at 15:30 MT time! Don't miss out!
- Crude oil imvemtories will be released at 17:30 MT time!
The European Central Bank will make its policy statement on July 22 at 14:45 MT (GMT+3).
Oil dropped to the lows unseen since late May. Bitcoin has dropped below $30,000, while gold has reversed up from a dip under $1,800.
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.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!