Markets again look to the US

July 30, 2020

Another busy day coming up for markets, with the US in focus yet again.

The USD continues its woes, allowing paired currencies to climb high overnight. The EURUSD opened at a low of $1.17113 and aside from a brief dip mid-session, the euro rallied for most of the day. The pair peaked at $1.18057 late in the day but has come off those highs and is now trading at $1.17751. The GBPUSD started the day at $1.29302 and slid to lows of $1.29111 early. It remained near those lows for a few hours before beginning its ascent, where it hit a high of $1.30128 late in the day. It has come away from those highs and is now trading at $1.29796.

Indices bounced back overnight, regaining some of the losses sustained recently. The Dow began the day at 26,395.22 and dipped to lows of 26,295.11 heading into mid-session trading. Those lows were not held for long as the index rallied to a high of 26,609.86. It has come off those highs and is now trading at 26,522.30. The Dax opened at 12,788.03 and slipped to an early low of 12,743.70. Like the Dow, the Dax bounced off those lows, peaking at 12,878.07 in the final hour of trade. In early Thursday trading, it is currently sitting at 12,863.15.

The day ahead sees an assortment of data being published, with the US once again in focus. The US will be publishing Advance GDP data for the June quarter. It is forecast that the US economy has shrunk by a massive 34.5% as a result of the coronavirus shutdowns. With such a large number and the difficulties in quantifying the effects of the shutdown, traders would be wise to treat this figure with caution.

Other data released today includes:

Australia – Building Approvals, Import Prices

US – Advance GDP Price Index, Unemployment Claims, Natural Gas Storage

Europe – German Prelim GDP & CPI, European Unemployment Rate, German Unemployment Change, Italian Monthly Unemployment Rate, Spanish Flash CPI, Swiss KOF Economic Barometer, ECB Economic Bulletin


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