July 20 2021 Daily Forex Analysis - Finveo
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July 20 2021 Daily Forex Analysis
Daily News
• The decline in global stock markets continued today. After the hard sales in the U.S. stock markets yesterday, Asian markets also regressed today. Concerns that
the delta variant poses a threat to the economic recovery are effective in the decline in stock markets. The Nikkei index in Japan fell close to 1 %today, the Topix
index fell 1.01 %, and the Kospi index in South Korea fell 0.8 %. Stock markets in Hong Kong and China also declined. Stock markets in the USA fell sharply
yesterday, and the Dow Jones index fell over 700 points. S&P 500 futures rose 0.2 % this morning, while Nasdaq futures rose 0.4 %. The 10-year U.S. bond yield is
at 1.19 % today, after a 10 basis point drop yesterday. The price of a barrel of West Texas-type crude oil rose 0.2 % to $66.52. Oil fell 7.5 % yesterday. Gold rose
0.2 %to $1,816.88 an ounce.
• The steps that the BoE can take against rising inflation in the UK are discussed. With the reopening of the UK economy and the lifting of restrictions, the policies
that the Bank of England (BoE) can follow to rein in rising inflation are discussed. "In the near term, the risk of a preventive monetary tightening hampering the
recovery continues to outweigh the risk of temporarily above-target inflation," Jonathan Haskel, Member of the Bank of England's Monetary Policy Committee,
said in a speech at the University of Liverpool. According to the data of the British Office of National Statistics (ONS), the consumer price index in the country
increased by 2.5 % in June, exceeding the expectation of 2.2 %. In the UK, the CPI was at 2.1 % in May. While the new type of coronavirus) restrictions in the
British economy of approximately 2.8 trillion dollars have been completely lifted as of today, ways to keep the increasing inflation under control are being sought.
• Recently, U.S. President Joe Biden has also joined the debate on whether inflation in the U.S. is temporary or not. Biden said inflation is temporary and they will
be on the alert for any intervention. U.S. President Joe Biden stated that the increases in prices are expected to be temporary, and that his administration is aware
that uncontrolled inflation will pose a challenge to the economy in the long run, and that they will be on the alert for any necessary intervention. Biden made
assessments on the economy at the White House. Pointing out that the U.S. economy experienced the highest growth in nearly 40 years in the first 6 months of
his administration, Biden said that now the economic growth forecasts have been doubled and the economy is expected to grow at a rate of 7 % or higher. Biden
stated that the USA is the only developed country whose growth forecasts are stronger than before the epidemic, and that the number of unemployment claims
has decreased by more than half since he took office.• EUR/USD is trading under 1.18 but above the 15-week lows as markets try to stabilize after tumbling on Monday. Concerns about the
Delta covid variant dominate weigh on sentiment. The U.S. 10-year Treasury yield pauses a four-day downtrend near the lowest levels
EUR/USD since February, adding one basis point 1.209% at the latest. In doing so, the risk barometer struggles for clear direction amid mixed
catalysts. On Monday, fears of virus strain dragging the recovery moves from the pandemic joined reflation fears to fetch EUR/USD to the
fresh low since April. However, a lack of major data and cautious sentiment ahead of Thursday’s ECB triggered the pair traders’ bounce
afterward. Moving on, the German Producer Price Index (PPI) for June, expected 8.5% versus 7.2% YoY, may keep the ECB hawks hopeful
and back the EUR/USD but the details of the ECB Banking Lending Survey, will be observed for further details.
• Resistance: 1,1815– 1,1825 - 1,1845
• Support: 1,1772 – 1,1762 - 1,1745• GBP/USD has extended its falls below 1.3650, hitting the lowest since February. The rapid spread of the Delta covid variant in the UK and
prospects of further deterioration weigh on the pound. Brexit issues add to the misery. GBP/USD's tumble below the 1.3670 double-
GBP/USD bottom was also exacerbated by the risk-off mood in markets, which favors a light to the safety of the U.S. dollar. The delta strain is
spreading rapidly all over the world, causing investors a rethink the economic recovery. The dollar's breather early on Tuesday and cable's
inability to take advantage of it is a bearish sign. A currency pair that cannot recover is set to tumble. Returns on the benchmark 10-year
bonds slipped under 1.20% on Monday.
• Resistance: 1,3676 – 1,3706- 1,3722
• Support: 1,3630 – 1,3613- 1,3583• Gold built on the previous day's bounce from the $1,795 region, or one-week lows and edged higher for the second
consecutive session on Tuesday. The XAU/USD held on to its gains through the early European session and was last seen
XAU/USD hovering around the $1,815 area, up nearly 0.15% for the day. Worries about the economic fallout from the spread of the
highly contagious Delta variant of the coronavirus was seen as a key factor that extended some support to the safe-haven
gold. That said, a combination of factors kept a lid on any meaningful upside for the commodity, at least for the time being.
• Resistance: 1820$ - 1824$ - 1829$
• Support: 1812$ - 1807$ - 1803$• Brent oil, which fell to an 8-week low as coronavirus cases increased, made up for some of its decline. After the futures
contracts in London recorded the biggest drop since March with 6.8 % yesterday, the price of oil per barrel rose above $ 69
BRENTOIL again today. The quarantines, which were reactivated in some parts of the world due to the Delta variant, were effective in
the sharp decline experienced yesterday. It is stated that the rise in the dollar also puts pressure on oil prices. The barrel price
of Brent oil for September delivery increased by 1.1 % to $69.36 today. With the economic recovery seen after the pandemic,
prices had increased in 7 of the last 8 months.
• Resistance: 69,24$ - 69,53$ - 70,09$
• Support: 68,40$ - 67,83$ - 67,55$• The Dow and the S&P 500 indexes sank more than 2% on Monday as investors sold off economically sensitive shares and
travel stocks and sought the perceived safety of bonds on fears that a spike in COVID-19 cases would derail a broader
S&P500 economic recovery. New infections surged in parts of Asia and England, while U.S. COVID-19 cases soared 70% last week,
fueled by the Delta variant. All 11 S&P sectors fell, with the so-called value stocks, including financial, industrial, materials
and energy, dropping between 2.5% and 4.4%. The benchmark S&P 500 snapped a three-week winning streak on Friday,
with only defensive sectors, perceived to be relatively safe during times of economic uncertainty, posting small gains.
• The banking sub-index (.SPXBK) sank 3.4%, tracking a fall in the benchmark 10-year Treasury yield to mid-February lows.
• Resistance: 4,277 – 4,285 – 4,297
• Support: 4,257– 4,246– 4,237Daily Stock News • International Business Machines (NYSE: IBM) said in its second-quarter earnings report Monday, its revenue beat analyst forecasts and beat forecasts. The company said it had $2.33 per share, with total revenue of $18.75B, while analysts in Investing.com polls had expected the company to earn $2.32 per share and total revenue of $18.29B. In the post-closing markets, IBM shares were up 1.96% at $140.75 after the earnings report. In the post-closing markets, IBM shares were up 1.96% at $140.75 after the earnings report. During the year, IBM shares rose 9%. The S&P 500 index, on which the stock is traded, rose 13%. (Positive) • Microsoft Corporation (NASDAQ: MSFT), The U.S. and UK described China as the driving force behind cyber attacks and espionage activities. New statements on cybersecurity have become a new source of tension between the White House and China. The U.S., UK and its allies blamed China for cyberattacks on Microsoft Exchange, while also blaming the Chinese government for suspected cyberattacks. The Biden administration has accused China of infiltrating the Microsoft Exchange email server and being responsible for a cyberattack that affected thousands of computers around the world earlier this year. "We condemn such malicious cyber activity designed to destabilize and damage Euro-Atlantic security and disturb the daily lives of our citizens," NATO said in a written statement. expression was used. Emphasizing NATO's determination to deter and combat cyber threats, the statement pointed out that such activities undermine the security and stability of the cyber space. (Negative) • Volvo (Stockholm: VolVb), warned on Tuesday of more production disruptions and stoppages this year after chip shortages prevented the truck maker from fully capitalising on strong demand for its vehicles in the second quarter. Operating profit at the maker of trucks, construction equipment, buses and engines nearly tripled to 9.73 billion Swedish crowns ($1.12 billion) from 3.27 billion a year ago, but slightly missed the 9.84 billion seen by analysts according to Refinitiv data. A global shortage of semiconductors just as the market roared back after last year's pandemic plunge has squeezed makers of heavy-duty trucks as well as smaller vehicles, crimping production, extending lead times and lifting costs. Volvo, a rival of Germany's Daimler and Traton, said it struggled with production stoppages of close to a month in the second quarter. And while recovering strongly, the group's reported sales and adjusted earnings remained below cyclically-high levels reached over the same period in 2019, before the pandemic hit. (Negative)
Currency Last Daily Change (%) Weekly Change (%) YTD Change (%)
EURUSD 1,1787 -0,11 -0,16 -3,51
GBPUSD 1,365 -0,19 -0,86 -0,15
USDJPY 109,62 -0,15 0,41 -5,81
USDCHF 0,9187 -0,13 0,08 -3,65
EURGBP 0,86355 -0,09 -0,69 3,49
INDEX FUTURE Last Daily Change (%) Weekly Change (%) YTD Change (%)
SPA INDEX 4269,3 0,43 -1,14 14,46
GXA INDEX 15225 0,87 -1,86 10,84
DMA INDEX 34031 0,59 -1,52 12,22
Commodities Last Daily Change (%) Weekly Change (%) YTD Change (%)
GC1 Comdty 1817 0,43 0,10 -4,13
XAUUSD Curncy 1815,82 0,18 0,21 -4,35
CLA Comdty 67,38 1,34 -6,27 39,16
CO1 Comdty 69,39 1,21 -5,63 34,07
Time Cur. Event
10:00 EUR Current Account (May)
14:30 USD Building Permits
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