- Better than expected ADP data
- Strengthening of the USD
- A pullback in the stock market in Europe
- Mixed sentiment on US indices
European indices finished today’s session lower, however this does not change the balance of forces on the chart. The main stock indices from the Old Continent remain within the local consolidation zone. It is worth noting that the current movements may be related to the end of the month and quarter, which is related to the rebalancing of portfolios. Meanwhile mixed moods prevail on the US stock market. Nasdaq fell slightly (0.12%), while the S&P 500 rose 0.05% and the Dow Jones gained 0.5%.
WTI crude oil rose nearly 1% however buyers were not able to break above recent highs and for now price still remains in the local consolidation zone, between support at $ 72.50 and resistance at $74.25. OPEC Secretary-General said Tuesday that oil demand is expected to rise by 6 million barrels per day this year, with 5 million bpd of that coming in H2 2021. OPEC+ will meet this week and the group is expected to increase supply for August by around 550,000 bpd.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appLooking at the precious metals market, gold is recovering from yesterday's sell-off. The zone at $ 1750 turned out to be a significant support and now we are observing a correction move. In the evening hours gold is gaining 0.5% and the silver rose over 1%.
When it comes to the Forex market, the US dollar did quite well today, which can be associated with a better-than-expected ADP report. The USD appreciated the most against JPY and CHF, (over 0.5%). EURUSD depreciated 0.35%, AUDUSD fell 0.15% and GBPUSD and NZDUSD slightly above 0.1%. The Canadian dollar fell just 0.05%.
Looking technically at USDJPY on the D1 interval, one can see that the pair managed to break above the psychological level of 111.00. If the current sentiment prevails, then an upward move may accelerate towards the upper limit of the ascending channel, in which the pair has been trading since April 23.
USDJPY interval D1. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
