July 28 2021 Daily Forex Analysis - Finveo

July 28 2021
Daily Forex Analysis

Daily News
•   The Fed’s periodic two-day policy meeting began Tuesday and will conclude tomorrow, with an announcement at 2:00 PM ET (1800 GMT) and then a press
    conference with Fed Chair Jerome Powell after that. Wall Street is watching to see if the Fed’s language shifts even ever so slightly on bond purchases or sustained
    price increases. Anecdotally, at least, prices for consumers at the grocery and clothing store have risen. On Tuesday, reports about a cold snap in Brazil affecting
    crops sent the price of coffee soaring to a six-year high. Asian shares stayed stuck at seven-month lows on Wednesday, as markets continued to digest a storm in
    Chinese equity markets, while currency markets were quiet with traders wary of placing large bets prior to the outcome of a Federal Reserve meeting. Asian
    shares have fallen in each of the three previous sessions as regulatory crackdowns in China roiled stocks in the technology, property and education sectors,
    leaving international investors bruised.

•   Chinese state-run financial media urged calm first thing on Wednesday morning, and while Chinese shares swung back and forth in early trading, they did not
    repeat the sharp plunges seen earlier in the week. Chinese blue chips were last flat, having had a volatile start to the day, and the Hong Kong benchmark gave up
    early gains to fall 0.24%. Both were still near eight-month lows. After the U.S. close, Google parent Alphabet (NASDAQ:GOOGL) Inc, Microsoft (NASDAQ:MSFT),
    and Apple (NASDAQ:AAPL) all reported record quarterly earnings, though the smartphone maker's shares slid in after-hours trading on the back of a slower
    growth forecast.

•    Oil prices rose as industry data showed U.S. crude and product inventories fell more sharply than expected last week, outweighing worries about the
    consequences of surging COVID-19 cases. U.S. crude ticked up 0.73% to $72.17 a barrel and Brent crude rose 0.54% to $74.93 per barrel.Gold prices firmed above
    the key psychological level of $1,800, while Bitcoin rose around 1%, trading either side of $40,000.

• EUR/USD eases towards 1.1800 heading into Wednesday’s European session. The US dollar attempts a bounce amid a risk-off market

EUR/USD     mood, as investors remain on the sidelines ahead of the Fed decision. The US Centers for Disease Control and Prevention (CDC) edits
            mask mandate and Australia’s key coronavirus infected state, New South Wales (NSW) refreshes the 16-month high of the daily cases to
            probe the EUR/USD bulls. Further, the UK reports the highest death toll since March 17 and offers another reason to be worried.
            Additionally, China’s crackdown on technology and tuition stocks, as well as the Sino-American tussles, also weighs on the market’s mood
            and put try to defend the US dollar bulls, but cannot ahead of the Fed.

                                                                                             •   Resistance: 1,1830– 1,1850 - 1,1880
                                                                                             •   Support: 1,1786 – 1,1751 - 1,1735

• GBP/USD has stalled its two-day uptrend, as the sellers continue to lurk just below the 1.3900 level. However, with the UK considering a
            travel corridor between the U.S. for freer movement and easing Brexit concerns, the GBP traders remain hopeful for another leg higher.
GBP/USD     Meanwhile, the US dollar holds its recent lower ground heading into the critical FED decision, awaiting fresh hints on taper timing for the
            next direction.

                                                                                            •    Resistance: 1,3911 – 1,3940- 1,4000
                                                                                            •    Support:    1,3835 – 1,3800- 1,3740

•   The weakening of the U.S. dollar against major currencies pushed the spot gold price above the psychologically important
              level of 1800 dollars/ounce. The ounce price of gold in international markets saw 1807 dollars this morning. Analysts also
XAU/USD       state that the gold price has risen with the influence of investors who want to hedge their risks before the Fed Open Market
              Committee (FOMC meeting), which will end today. They stated that the $ 1810 level must be crossed for an upward
              movement to begin.

                                                                                    •   Resistance: 1811$ - 1820$ - 1827$
                                                                                    •   Support:    1800$ - 1793$ - 1784$

• Oil prices dipped for a second straight day on Tuesday as a surge in the Delta variant of Covid continued to pose headwinds for
             the market. But losses in crude prices were limited by optimism that the U.S. stockpile count for last week may have shown a
BRENTOIL     renewed drop after the previous week’s rise. Oil was up Wednesday morning in Asia, boosted by a draw in U.S. crude supplies
             that reinforced expectations that fuel demand will outstrip supply growth. However, increasing numbers of COVID-19 cases
             globally capped the black liquid’s gains.

                                                                                      •   Resistance: 75,38$ - 76,03$ -76,73 $
                                                                                      •   Support: 74,40$ - 73,69$ - 72,92$

• U.S. stocks fell for the first time in six days on Tuesday ahead of quarterly earnings reports from several megacap technology
           companies. The S&P 500 declined nearly 0.5% to 4,401.46, led to the downside by consumer names, tech and energy. The
S&P500     broad equity benchmark dropped 1.1% at its session low. The Dow Jones Industrial Average fell 85.79 points, or 0.2%, to
           35,058.52, after dropping as much as 266 points earlier. The Nasdaq Composite slid 1.2% to 14,660.58. The major averages
           all slipped from their respective records reached in the previous session, breaking their five-day winning streaks.

                                                                                     •   Resistance: 4,401 – 4,421 – 4,443
                                                                                     •   Support: 4,373– 4,351– 4,332

Daily Stock News
• Alphabet Inc. Class A (NASDAQ:GOOGL) reported earnings that beat analysts' forecasts and revenue that topped expectations. Search giant Alphabet
  announced earnings per share of $27.26 on revenue of $61.88 billion. Analysts polled by Investing.com anticipated EPS of $19.24 on revenue of $56.19 billion.
  Alphabet shares are up 50% from the beginning of the year, still down 1.81% from its 52 week high of $2,687.20 set on July 27. They are outperforming the
  Nasdaq 100 which is up 16.05% from the start of the year. Alphabet shares gained 2.64% in after-hours trade following the report. Advertising revenue for its
  YouTube segment was $7 billion, more than the $6.4 billion expected by analysts. Total Google ad revenue jumped 69%, to $50.4 billion. Cloud revenue also
  topped expectations, at $4.6 billion. (Positive)

• Apple (NASDAQ:AAPL) reported earnings that set a record and beat Wall Street expectations. Apple announced earnings per share of $1.30 on revenue of
  $81.43 billion. Analysts polled by Investing.com anticipated EPS of $1.01 on revenue of $73.26 billion. Apple shares are up 10% from the beginning of the year,
  still down 2.14% from its 52 week high of $149.98 set on July 15. They are under-performing the Dow Jones which is up 14.55% from the start of the year. Apple
  shares gained 0.29% in after-hours trading Tuesday following the report. Consumers snapped up new iPhones and other devices during the spring quarter,
  pushing revenue 36% higher on pace for its best fiscal year, according to analysts. Sales of iPhones rose 33%, to $39.6 billion. (Positive)

• McDonald’s Corporation (NYSE:MCD), like other fast food chains, is benefitting from a surge in restaurant visits. Analysts tracked by the McDonald’s reporting an
  EPS of $2.11 and revenue of $5.58 billion for the second quarter. (Positive)

• Boeing Co (NYSE:BA) is expected to announce a loss per share of 81 cents in the second quarter on revenue of $16.72 billion, according to analysts tracked by
  Investing.com. Analysts will be listening for the company’s outlook on production. (Negative)

Currency       Last            Daily Change (%)                 Weekly Change (%)   YTD Change (%)
EURUSD         1,1809                  -0,07                            0,32               -3,33
GBPUSD         1,3887                   0,06                            1,02               1,59
USDJPY         109,83                  -0,05                            0,66               -5,99
USDCHF         0,9151                  -0,07                            0,47               -3,27
EURGBP         0,85037                  0,12                            0,65               5,10

INDEX FUTURE    Last             Daily Change (%)                 Weekly Change (%)   YTD Change (%)
SPA INDEX      4394,6                  -0,45                            -0,19             17,82
GXA INDEX      15531                    0,12                            -0,76             13,09
DMA INDEX      34878                   -0,22                            -0,21             14,97

Commodities     Last             Daily Change (%)                 Weekly Change (%)   YTD Change (%)
GC1 Comdty    1804,3                    0,24                             0,13              -4,80
XAUUSD Curncy 1805,13                   0,33                             0,16              -4,92
CLA Comdty     72,06                    0,52                            -0,07             49,45
CO1 Comdty     74,8                     0,44                             0,96             44,42

                         Time         Cur.                    Event
                         16:30        USD              Crude Oil Inventories
                         20:00        USD           FED Interest Rate Decision
                         20:30        USD            FOMC Press Conference