Market Update – July 27/2022

Written by Stuart Cowell

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 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 – infocus 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 GoodsFOMC announcement and Chair Powell’s press conference Earnings from Airbus, BASF, Deutsche Bank, Equinor, BATS, GSK, Lloyds, Rio Tinto, Credit Suisse, Meta, T-MobileBoeing.

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.

About the author

Stuart Cowell

With over 25 years experience working for a host of globally recognized organisations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what is probable and understanding how the news, charts and sentiment work together to provide trading opportunities across all asset classes and all time frames.