HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
MultiBank Group information and reviews
MultiBank Group
84%

Markets in waiting mode ahead of earnings releases and risk events


30 July 2024 Written by Raffi Boyadjian XM Investment Analyst Raffi Boyadjian

Stocks are mixed ahead of this week’s key events

US stock indices were mixed yesterday as the market is preparing for this week’s big events. There is lots of speculation about Wednesday’s Fed meeting but, at this stage, a dovish shift looks unlikely, which means that this week’s US data will do most of the talking. The calendar is mostly filled with second-tier releases today although both the housing sector data and the consumer confidence index carry a lot of weight among market participants.

In the meantime, with the current earnings round proving satisfactory, Microsoft is set to announce its Q2 results after today's market close, followed by Meta on Wednesday, and Amazon and Apple on Thursday. The S&P 500 technology sector is preparing for its first negative monthly return since April when the S&P 500 lost around 4% of its value. More traditional sectors, like the Real Estate and Financials sectors, are on course to finish this month in the green.

Euro area in focus today

Despite being overshadowed by the numerous central bank meetings and Friday’s US labour market report, key data will be released this week in the euro area. Starting today, the preliminary GDP print for the second quarter of 2024 is expected to show a decent growth pace even though the situation in Germany remains problematic.

More importantly, the preliminary CPI prints from the German states will trickle in during the day with the German national figure expected around 12.00 GMT. German CPI is seen stable at 2.2% year-on-year increase, thus putting a dent in the possibility of an upside surprise from Wednesday’s euro area aggregate release.

The euro is trying today to stage a small recovery against both the dollar and the pound. However, the combination of weaker eurozone figures, a balanced Fed and stronger labour market data in the US could open the door to a more protracted correction in euro/dollar towards the 1.0730 area.

Yen is on the back foot ahead of BoJ

In the meantime, Wednesday's BoJ meeting is getting lots of press time as speculation for a rate hike is rife. Despite the mixed data lately, the market feels that this is the right time for another step towards policy normalization.

The yen is weakening today against the dollar after a strong correction. This move has been mostly the product of currency interventions by the BoJ as Japan’s new top currency official, Atsushi Mimura, has adopted a more aggressive approach than his predecessor. However, the yen’s new-found strength is dependent on the BoJ's monetary policy stance and hence a failure by the BoJ to appease the market on Wednesday could quickly cause an acute market reaction.

Gold, oil and bitcoin move in parallel

The commodity space remains under pressure as gold is struggling to regain the $2,400 level and WTI oil futures have dropped to a new 50-day low. The ongoing dollar outperformance is hampering both assets with the latest developments in the Middle East proving unable to support them. In the meantime, bitcoin is lower today after trading at the highest level since early June on the back of Donald Trump again sounding pro-crypto at the Bitcoin Conference in Nashville. Profit taking is probably on the cards ahead of this week’s key events.

By XM.com

#source


RELATED

Dollar awaits NFP, euro traders keep gaze locked on politics

The US dollar is pulling back against all its major peers today, perhaps as traders are adopting a cautious stance ahead of tomorrow’s nonfarm payrolls report, especially after the ADP report revealed that the private sector gained less jobs than expected.

5 Dec 2024

Thin liquidity and month-end could keep the dollar under pressure

Pending a major development, the week is likely to finish on a quiet note as the US markets will open today but close early. With Fed speakers taking a back seat this week, geopolitics dominated the headlines.

29 Nov 2024

Nvidia fails to lift markets, dollar stands tall

Equity markets continue to trade with lackluster momentum, struggling for direction even after AI giant, Nvidia, announced outstanding third quarter earnings.

21 Nov 2024

Gold edges up amid Ukraine tensions, stocks and dollar subdued

Gold rebounds as Biden lets Ukraine use long-range missiles on Russia. Yen slips again after Ueda offers no clues on December hike.

18 Nov 2024

Wall Street loses more steam as Powell not in a hurry to cut rates

Fed rate cut expectations were dramatically pared back on Thursday after Fed chief, Jerome Powell, rounded up the week’s hawkish rhetoric by adding to the sense of caution about the pace of easing.

15 Nov 2024

Dollar extends gains, bitcoin soars but stocks lose momentum

Speculation about the expected impact of Donald Trump's policies continues to dominate the market theme, as investors await details about who will be in Trump's cabinet. The US dollar advanced to four-month highs against a basket of currencies.

12 Nov 2024

Fed delivers rate cut, stocks rally but dollar not impressed

The market is convinced that another 25bps rate cut will be announced on December 19, as it is currently assigning a 92% probability to this outcome.

8 Nov 2024

Markets hold their breath as America votes

The countdown for the biggest event of 2024 is finally over as in a few hours around 80 million registered voters will cast their vote across the United States.

5 Nov 2024

Wall Street lifted by earnings as election jitters boost gold

Despite pledges for lower taxes and less regulation, markets are nervous about the prospect of Trump returning to the White House amid his chaotic and confrontational style of leadership.

30 Oct 2024

Oil slumps after Israel's attack; yen slips on Japan election shock

Oil prices tumbled as trading got underway on Monday, opening with a gap down as investors responded to Israel’s retaliatory attack against Iran on Saturday.

28 Oct 2024

Stocks under pressure amid US election jitters, dollar extends gains

The rally on Wall Street came to an abrupt end this week as uncertainty about the looming US presidential election as well as about the pace of Fed rate cuts undermined confidence in risk assets.

24 Oct 2024

Gold and dollar edge up as markets bet on Trump win

Gold extended its record streak at the start of the new trading week as investors increasingly bet on Donald Trump winning the US presidential election on November 5.

21 Oct 2024

US dollar could benefit from an unexciting ECB meeting

The euro remains on the back foot as it continues to underperform the dollar. The pair has dropped to the lowest level since August 2 with October shaping up to be the weakest month for euro/dollar since May 2023.

17 Oct 2024

Stocks under pressure by chipmakers, pound slips on CPI drop

Equity markets suffered a setback on Tuesday after Dutch semiconductor giant, ASML, sparked panic about the demand outlook for chips when it accidentally published its earnings report a day early.

16 Oct 2024

Dollar edges up, stocks muted as China stimulus underwhelms

Chinese officials unveiled more measures to shore up the country’s embattled property sector while also pledging further support for businesses and consumers in two separate announcements on Saturday and Monday.

14 Oct 2024

Wall Street hits new record after Fed minutes, CPI eyed next

Fed minutes show split over September cut but Wall Street rallies; Dollar eases from near 2-month high as focus turns to CPI report; Gold and oil steadier after recent losses

10 Oct 2024

Risk appetite ebbs as markets fret over China stimulus, Fed rate cuts

Chinese traders returned from a week-long holiday today and hopes were high that the government would unleash more big packages to support the flagging economy.

8 Oct 2024

Will the dollar or stocks smile after the non-farm payrolls print?

Spotlight falls on the key US labour market data. Non-farm payrolls to rise by 140k, but could surprise to the upside. Dollar to enjoy a strong set of data, equities prefer weaker prints. Euro suffering continues, while both gold and oil advance.

4 Oct 2024

Markets maintain upbeat mood ahead of PCE inflation

China stimulus and rate cut bets propel stocks higher. Dollar caught in choppy trading as crucial inflation data awaited. Yen surges as new LDP leader in favour of rate hikes set to become PM.

27 Sep 2024

Euro sinks on poor PMIs, dollar firms ahead of Fedspeak

Eurozone PMIs dip into contraction zone, euro takes a dive. Stocks mixed as weak PMIs offset optimism about China stimulus. Dollar edges up as after Waller comments. Powell and PCE inflation eyed next.

23 Sep 2024


Editors' Picks

Regulation Matters: Why a Licensed Forex Broker Should Be Your Top Priority

Choosing a regulated broker is not just a matter of preference; it is a necessity for safeguarding your investments and ensuring that you trade in a fair and secure environment.

Automating Success: The Benefits and Risks of Using Forex Expert Advisors

This article explores the benefits and risks associated with using Forex Expert Advisors, providing insights into how traders can maximize their potential while mitigating potential downsides.

Best Forex Brokers 2024

By prioritizing factors such as overall rating, regulatory compliance, trading conditions and platform reliability traders can make an informed decision that aligns with their trading needs and aspirations, setting the stage for a potentially prosperous trading journey.

The Top Forex Expert Advisors 2024: Performance, Strategy, and Reliability Review

An annual roundup reviewing the most successful Forex Expert Advisors (EAs) based on their performance, strategies employed, reliability, and user feedback. This piece would provide insights into which EAs have been market leaders and why.

The Evolution of Forex Expert Advisors: Navigating the Path of Technological Revolution

The concept of automated trading has been around for decades, but the accessibility and sophistication of Forex EAs have seen significant advancements in the past few years. Initially, automated trading systems were rudimentary, focusing on simple indicators like moving averages.

Best Forex EAs 2024 – Forex Expert Advisors Rating

Expert Advisors (EAs) Rating features high-quality Free and paid Forex EA most popular on the market today.

XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
Octa information and reviews
Octa
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.