What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
What to trade on June 2?
The day started with a fresh data from Australia. The Reserve Bank of Australia set a cash rate unchanged. Also, RBA’s governor Philip Lowe was quite optimistic about the future economic recovery. He said: “it is possible that the depth of the downturn will be less than earlier expected”. He noticed that restrictions had been eased and rate of infections reduced. The market sentiment immediately improved and pushed AUD up. We can see on the AUD/USD that it rebounded to its pre-crisis levels. The price broke through all moving averages. Now it’s headed towards the retracement level at 0.69. The next one will be at 0.7. Support levels are 0.675 and 0.665.
Oil prices stabilized at $35
The oil prices are flat as markets wait for the OPEC+ decision. Russia and Saudi Arabia can agree to extend supply cuts in next three months. It will allow WTI oil prices to rebound to $40 a barrel at least. Petrol consumption is recovering, but it still well below pre-coronavirus levels. Speaking about airplanes, it’s hard to say when the industry will come back to normal. The WTI oil price slightly crossed the 100-day moving average and it’s headed to the new high at 37.5. Support levels are 31.5 and 27.
Violent protests in the USA
Violent protests in the USA have made the US dollar really weak. Investors start doubting about the future US recovery. The US economy hasn’t yet recovered from the coronavirus damage, when it met the new challenge. Donald Trump said that he would deploy the military troops if states don’t take measures. That led to S&P 500 contraction for a while. However, stocks are still trading at high levels as most economies are reopening.
On Saturday, SpaceX, founded and led by Elon Musk, sent two NASA astronauts to the International Space Station. The launch was successful and gave more confidence to investors in Musk and in Tesla. Let’s look at the chart, the price reached pre-crisis positions. The key psychological mark at 900 is really close. Support levels are 805 and 765.
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!
Hong Kong stock index extended a decline sparked by China’s tech crackdown. Tesla posted better-than-expected results. Jump in!
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
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!