The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
How to trade on July 27?
Information is not investment advice
Gold is eyeing $2 000, the EUR has reached 1.70 and other interesting market movements.
- Both Australian PMIs: Manufacturing and Services, came better than analysts expected and marked the industry expansion in the country.
- The mixed data from the UK came on Friday. The British retails sales beat estimates and turned out 13.9%, while the forecast was 8.3%. The PMIs were better than expected as well. However, the effect was slightly damaged by the GfK consumer confidence. It was -27, while -25 was anticipated.
- All the PMIs from France, Germany and Europe, as a whole, exceeded analysts’ expectations, except only one - French flash manufacturing PMI. Nevertheless, the overall picture remained positive. The EUR keeps rallying for the 7th day in a row.
- The US data came worse than economists foresaw. Both PMIs, Manufacturing and Services, turned out worse than anticipated. The Services PMI even went below 50.0, what marked the industry contraction. This was the result of the fresh coronavirus outbreak in the country. Unlike the euro, the US dollar continues falling down for the 7th day straight.
EUR/USD is approaching the 61.8% Fibonacci level at 1.1820. If the pair crosses this level, it may surge to the next key psychological mark at 1.200. On the flip side, if it falls below the 38.2% Fibo level at 1.1370, it may drop even deeper to the low of July 8 at 1.1285.
XAU/USD surged to the all-time high at $1 930. Nobody even doubts that gold will reach $2 000. Anyway, support levels are at $1 885 and $1 868.
The aussie has formed a morning star, which is a bullish signal. If it crosses the high of July 22 at 0.7185, it will reach the high of April 7, 2019 at 0.7185. Otherwise, if it drops below the support at 0.7100, it will slump to the key psychological mark at 0.700.
The stock index has bounced back from the support at 3 190. If it breaks through the resistance at 3 270, it may surge to 3 325. In the opposite, the move below 3 190 will push the price to the low of July 7 at 3 135.
- The US durable goods orders will be published at 15:30 MT time. Don’t miss out!
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The overall market sentiment is mixed as investors await the Federal Reserve’s statement today at the evening.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
The US NFP will be published on August 7 at 15:30 MT time.
The RBA will make a rate statement on August 4 at 7:30 MT time.