Date : 27th July 2022.
Market Update – July 27 – Big Tech lifts the mood on Fed Day.
Trading Leveraged Products is risky
USDIndex ticked up to 107.00, as EUR slipped over 1% before recovering following the Russian announcement of further cuts to European gas supplies. FX markets subdued ahead of FED later today. US Stocks declined (NASDAQ -1.87%), Walmart -7.6% (profits warning) Coinbase -21% AMZN -5.23% Shopify -14%. However, after hours GOOGL & MSFT were up 5% & 4% after Earnings. Unilever, Coke & McDonald’s all warned of higher prices. Asian markets mixed (Hang Seng -1.2%, Nikkei +0.23%). European FUTS higher. Yields up again +0.56%, but 2/10yr curve remains inverted. Oil holds $95, Gold slipped to lower and BTC holds under $22k.
* USDIndex up, to resistance at 107.00 – holds at 106.80.
* Equities – USA500 closed -45.79 pts (-1.15%) (3921), US500FUTS at 3957 now. 4th 8%+ rally of the year, previous 3 have resulted in lower lows..is the bottom in or is it a dead cat bounce?
* Yields 10-year yield recovered to close at 2.787%, trades higher again at 2.8068% now.
* Oil – in–focus rallied to $98 on news from Russia, since declined to $95.
* Gold had another weak session – $1727 to $1714, now up to $1718.
* Bitcoin sank again to trade at $21.1K now.
* FX Markets – EURUSD remains pressured came within 7 pips of 1.0100 and trades at 1.0225, USDJPY tests to 137.00 now. Cable holds over the key 1.2000, capped at 1.2080.
Overnight – AUD CPI in-line (21-yr high) at 1.8% & German GfK missed -30.6 vs -27.7.
Today: US Durable Goods, FOMC announcement and Chair Powell’s press conference Earnings from Airbus, BASF, Deutsche Bank, Equinor, BATS, GSK, Lloyds, Rio Tinto, Credit Suisse, Meta, T-Mobile, Boeing.
Biggest FX Mover @ (06:30 GMT) AUDCAD (-0.30%). Rejected 0.8950 again earlier and tested to 0.8900 a key support. MAs aligned lower, MACD histogram negative & falling, RSI 38 & falling, H1 ATR 0.00127, Daily ATR 0.00697.
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
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Stuart Cowell
Head Market Analyst
HFMarkets
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